Report

VW hit with $13M fine in Brazil over diesel scandal

German Automaker Will Recall 17,000 Vehicles

Different hemisphere, same problem. Beleaguered German automaker Volkswagen is now the subject of a $13 million fine in Brazil, Reuters says. And, again, the issue is software that programs diesel engines to cheat emissions-testing systems.

This time, the problem involves VW's Amarok pickup tricks. Brazil regulators say the company will receive a fine for defrauding the country's emissions-testing system. Additionally, VW said last month that it would recall more than 17,000 of those pickup tricks in order to correct the software that's causing the issue.

The VW emissions scandal broke in September, and it doesn't show signs of abating anytime soon, as the company hasn't detailed how or when it will fix all of the impacted vehicles. Earlier this month, the US Environmental Protection Agency (EPA) alleged that the so-called emissions defeat software was discovered in the company's 3.0-liter TDI V6 diesel engines, something VW hasn't admitted to, yet. Those engines are different from the 2.0-liter diesel that was the subject of the original scandal. Discoveries involving those engines, among other things, caused VW to set aside $7.3 billion to address the issue and forced its CEO to step down.

VW, which put a stop-sale on affected diesel vehicles in the US, continues to be in damage-control mode. The company has started a $1,000 "Goodwill" program for the owners of the almost 500,000 diesel vehicles that contain the cheating software. At the same time, VW is sending some love to dealers in the form of factory discounts and other incentives as well as some cash and no-interest loans.

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