Background:
Manufacturers of new motor vehicles must file an emission defect information report (EDIR) with EPA not more than 15 working days after an emission-related defect is found to affect 25 vehicles or engines of the same model year. These defect reporting requirements are a critical part of EPA's program to ensure that vehicles on the road comply with the Clean Air Act's emissions standards.
Violation: Mercedes-Benz USA, LLC and DaimlerChrysler AG (Mercedes) failed to timely file EDIRs relating to eight emission-related defects in numerous 1998 to 2006 model vehicles.
Civil Penalty: $1.2 million
Affected Vehicles:
• The following vehicles have been recalled to inspect and replace, if necessary, the catalytic converter:
1999-2001 Mercedes Benz ML 320 (VIN range A036519-A260405)
1999 -2001 Mercedes Benz ML 430 ( VIN Range A057639-A260575)
• The following vehicles have been recalled to update the software and replace the secondary relay in air pumps:
2002-2004 Mercedes Benz SLK 32 AMG ( VIN Range 227774-310327)
2002-2004 Mercedes Benz C32 AMG ( VIN Range 131482-535283)
2003-2006 Mercedes Benz E 55 AMG Sedan ( VIN Range 136286-917813)
2005-2006 Mercedes Benz E 55 AMG Wagon ( VIN Range 715663-913573)
2003-2006 Mercedes Benz CL 55 AMG ( VIN Range 030004-047689)
2003-2006 Mercedes Benz S 55 AMG ( VIN Range 306185-484676)
2003-2006 Mercedes Benz SL 55 AMG ( VIN Range 009541-116751)
2005 Mercedes Benz G55 AMG ( VIN Range 146910-164172)
2005-2006 Mercedes Benz SLR ( VIN Range 000018-001032)
2006 Mercedes Benz CLS 55 AMG ( VIN Range 007370-061871)
• The following vehicles will have warranties for their catalytic converters extended to 10 years, unlimited mileage:
2000 Mercedes Benz CL 500 (FIN Range WDB2153751A000174 - WDB2153751A001519)
2000 Mercedes Benz S 430 (FIN Range WDB2200701A001280 - WDB2200701A121670)
2000 Mercedes Benz S 430 (FIN Range WDB2201701A000335 - WDB2201701A115308)
2000 Mercedes Benz S 500 (FIN Range WDB2201751A000346 - WDB2201751A082651)
American Honda Motor Company Clean Air Act Settlement
Civil Penalty: $12.6 million
American Honda Motor Co., Inc. ("Honda") will spend $267 million to settle allegations that it violated the Clean Air Act by selling vehicles with disabled emission control diagnostic systems, the Justice Department, the Environmental Protection Agency, and the California Air Resources Board ("CARB") announced today. The settlement is the largest ever under the Clean Air Act. It includes $12.6 million in civil penalties - the largest civil penalty in Clean Air Act history.
"This settlement is good for the environment and good for American consumers," said U.S. Department of Justice Attorney General Janet Reno. "It will help eliminate thousands of tons of exhaust emissions from more than 1.6 million vehicles across our nation And it will help save Honda owners money because they will get an early warning that their car needs repair."
Carol M. Browner, EPA Administrator said, "Today's settlement is proof that this Administration is vigorously enforcing the Clean Air Act to ensure the protection of public health and the environment for all Americans."
The United States alleged that Honda disabled the misfire monitoring device on 1.6 million 1996 and 1997 model year Accords, Civics, Preludes, Odysseys, and Acuras, as well as 1995 Honda Civics. The complaint also alleged that Honda failed to report this fact when applying for Certificates of Conformity, which allow for vehicles to be legally sold if they meet federal emission standards.
The misfire monitoring device is part of an enhanced computer system, known as the "On-Board Diagnostic System("OBD")," which checks a vehicle's emission performance when the vehicle is in use. When the misfire device is disabled during an engine misfire, the system's malfunction indicator light will not operate Because the vehicle's owner is unaware that the engine needs to be serviced, increased exhaust emissions of hydrocarbons and damage to the vehicle's catalyst may occur.
Under an agreement filed today with the US District Court for the District of Columbia, and a related agreement between Honda and CARB, Honda will extend the emissions warranty for all affected models to 14 years/150,000 miles, provide an engine check and any emissions-related repairs needed between 50,000 and 75,000 miles of use, and provide a free tune up between 75,000 and 150,000 miles of use, at a cost to Honda of at least $250,000 million. In addition, Honda will spend, under the federal and State agreements, $17.1 million, including $12.6 million in civil penalties -- the largest ever under the Clean Air Act -- and $4.5 million to implement environmental projects to reduce pollution.
"The settlement we announce today vindicates the Clean Air Act's goal of protecting our environment while avoiding a long, costly lawsuit," said Wilma A. Lewis, US Attorney for the District of Columbia. "We stand ready to ensure that those who violate environmental laws are held accountable and prosecuted whenever the facts warrant such action."
Honda cooperated with EPA and DOJ during the investigation.
Stressing the importance of a vehicle's on-board diagnostic system, EPA noted that auto mechanics rely on the diagnostic system to find and correct engine problems. If vehicle manufacturers do not fully comply with the OBD rules, problems may be overlooked and the results could be harmful to the environment and costly to the consumer. State emission regulators also rely on the data stored on this diagnostic tool to indentify emission problems.
If Honda's violations had been left undetected, EPA estimates that more than 8,000 tons of hydrocarbons would have been emitted into the atmosphere by misfiring cars. Hydrocarbons are a component of ozone, which can aggravate respiratory conditions such as asthma.
Toyota Motor Corporation Settlement
Civil Penalty: $500,000
WASHINGTON, DC, March 7, 2003 --The Department of Justice and the Environmental Protection Agency announced a settlement of the government's lawsuit against Toyota Motor Corporation for Clean Air Act violations involving 2.2 million vehicles manufactured between 1996 and 1998. Under the settlement, Toyota will spend $20 million on a supplemental environmental project to retrofit up to an estimated 3,000 public diesel fleet vehicles to make them run cleaner and extend the evaporative emission control system warranty on affected vehicles (PDF, 22.4KB, 2 pages). In addition, Toyota will accelerate its compliance with certain new evaporative emission control requirements, and pay a $500,000 civil penalty. The settlement will cost Toyota an estimated $34 million.
The United States alleged that Toyota sold 2.2 million vehicles which were different from those described in its application for Certificates of Conformity, which allow vehicles to be legally sold if they meet Clean Air Act emission standards and other requirements. The government's lawsuit charged Toyota failed to disclose limitations in the operation of that part of the on-board diagnostic (OBD) system that checks for leaks in vehicles' evaporative emission control systems. As a result, the OBD system would not promptly signal drivers to a problem by lighting their dashboard light. Emission control system leaks need to be noticed and repaired because release of fuel vapors into the atmosphere contributes to ozone pollution.
The supplemental environmental project requires Toyota to spend $20 million to retrofit an estimated 3,000 diesel vehicles, including older, high-polluting school buses and municipal buses (which are not manufactured by Toyota) with pollution control equipment, such as catalytic converters, filters or whole engines. These retrofits, along with the purchase of ultra-low sulfur fuel (which Toyota may to some extent subsidize) is expected to eliminate up to 220 tons of particulate matter emissions, 1,200 tons of hydrocarbon emissions, and 15,000 tons of carbon monoxide emissions. Parties interested in contacting Toyota about these retrofits may contact Toyota's representative, Hamilton Loeb, Esq. by electronic mail at hamiltonloeb@paulhastings.com, by phone at 202 508 9535, and by facsimile at 202 508 8535.
School children near school buses, as well as pedestrians, are particularly likely to experience high exposure to diesel particulate matter. Diesel particulate is classified as a probable human carcinogen and is known to exacerbate the effects of asthma and heart disease. More than 24 million children across the nation ride diesel buses to school.
The settlement also requires Toyota to accelerate, by approximately one year, its compliance with the phase-in of EPA's new "near-zero" evaporative emissions regulation, which requires the capture of more gasoline vapors. Due to this accelerated compliance, about 1.4 million new Toyota vehicles manufactured from 2004 to 2006, which would not yet be subject to the new regulation, will be built with more robust evaporative emission control systems. The accelerated compliance schedule is estimated to cost Toyota about $11 million.
The case, filed in federal District Court in Washington, DC, involves model year 1996 through 1998 vehicles, including some Camry, Avalon, Corolla, Tercel, Paseo, Lexus, Sienna minivans, 4Runner, RAV4, Tacoma and T100 models. The settlement requires Toyota to notify owners of affected vehicles (PDF, 22.4KB, 2 pages) of the warranty extension within the next 12 months. The evaporative emission control system warranty will be extended from the current two years or 24,000 miles to 14 years or 150,000 miles. The extended warranty is estimated to cost Toyota about $3 million, and will reduce emissions of hydrocarbons by affected vehicles by an estimated 30 tons, in addition to the 1,200-ton reduction of hydrocarbons achieved by the supplement environmental project.
Owners who have not received a notice within 12 months are encouraged to contact their local Toyota dealer. Owners of affected vehicles who suspect a problem with their evaporative emission control system (including the smell of gasoline vapors) should contact an authorized Toyota dealer for service under the extended evaporative system warranty. Toyota will not cover the cost of repairs or diagnosis for systems other than the evaporative emission system or for repairs performed by parties other than authorized Toyota repair facilities. The malfunction indicator light (on the dashboard) may illuminate for a variety of reasons, including a malfunctioning evaporative emission control system. EPA's investigation did not find a problem with the evaporative emission control system on these vehicles, which is why the government did not consider a recall in this case. For additional information about this extended warranty, owners may contact Toyota or Lexus Customer Relations:
- Toyota: 1-800-331-4331 (Department: Customer Relations)
- Lexus: 1-800-25-LEXUS (Department: Lexus)
The proposed settlement will be published in the Federal Register for 30 days for public comment, and must be approved by the Court.
U.S. Announces $94 Million Clean Air Act Settlement with Chrysler over Emission Control Defects on 1.5 Million Jeep and Dodge Vehicles
Release date: 12/21/2005
Civil Penalty: $1 million
(Washington,D.C.-Dec. 21, 2005)
The United States has reached a settlement with
DaimlerChrysler Corporation (Chrysler) to repair defective emission controls on
nearly 1.5 million Jeep and Dodge vehicles from model years 1996 through 2001,
the Justice Department and the Environmental Protection Agency (EPA) announced
today. The agreement also settles allegations that the company violated the
Clean Air Act (CAA) by failing to properly disclose defective catalytic
converters installed on the affected vehicles. In settlement, Chrysler has
agreed to:
Extend the warranty on the
catalytic converters installed on approximately 700,000 of the vehicles
involved, and for another 300,000 vehicle owners, send notification of the
catalytic converter problem which will be covered under the original emissions
system warranty under the CAA;
Recall approximately 500,000 of the vehicles
to fix a separate defect in the on-board diagnostic (OBD) system installed on
the vehicles and to check the catalytic converters on the recalled vehicles;
and
Implement enhanced emission-related defect
reporting procedures.
The total estimated cost to Chrysler to implement the settlement is $90 million. In addition, Chrysler will pay penalties of $1 million and will spend at least $3 million to implement a supplemental environmental project to reduce emissions from diesel engines currently in use, making this the largest settlement yet for an emission-related defect reporting case. Chrysler will pay another $1 million to California as part of a parallel administrative settlement agreement with the California Air Resources Board (CARB), and will provide similar remedies for California-certified vehicles with the catalyst or OBD defects.
Auto makers' prompt and full disclosure of emission-system defects to EPA is critical to ensuring that vehicles on the road comply with the Clean Air Act, and to protecting the enormous progress we have made toward reducing vehicle emissions," said Sue Ellen Wooldridge, assistant attorney general for the Justice Department's Environment and Natural Resources Division. "The settlement announced today underscores the Justice Department's commitment to enforcing the Act's disclosure requirements."
Today's lawsuit is the result of a joint EPA-CARB investigation of Chrysler's 1996 through 2001 Cherokees, Grand Cherokees, Wranglers, Dakota trucks, and Ram vans, wagons, and pickup trucks. The investigation disclosed that a significant percentage of the vehicles experience excessive deterioration or failure of the catalytic converter. The catalytic converter is a device installed in the exhaust system of an internal combustion engine to control emissions and reduce pollutants, including hydrocarbons, carbon monoxide, and oxides of nitrogen.
The deterioration of the catalytic converters in the named models results from a design defect in the original converter installed on each of the vehicles. As a result of this design defect -- in some of the identified Chrysler vehicles -- the internal components of the converter move around excessively, causing the device's ceramic core to break up. The result is that the catalytic converter loses its ability to treat harmful pollutants. Most owners experience a rattling noise from the underside of their vehicle as the catalytic converter deteriorates. The EPA-CARB investigation also disclosed that the OBD system installed on certain of the 1996, 1997, and 1998 model year vehicles -- which should have detected the catalytic converter problem and illuminated the dashboard "check engine" light -- may not function properly, leaving some owners unaware of the problem.
Cleaner cars require emissions control systems that work, and prompt measures to fix emission-related defects when they occur," said Phyllis Harris, EPA's principal deputy assistant administrator for the Office of Enforcement and Compliance Assurance. "This case demonstrates EPA's commitment to ensuring that automobile manufacturers comply with their emission-defect reporting and emission system obligations under the Clean Air Act."
To achieve the benefits envisioned by the Clean Air Act, emission controls must operate effectively and be durable for the life of the vehicles on the road," said Bill Wehrum, EPA's acting assistant administrator for Air and Radiation. "This settlement will enable hundreds of thousands of vehicle owners to repair defective emission control systems at no cost, resulting in cleaner vehicles and cleaner air for the public."
Under the settlement, Chrysler will notify approximately 700,000 owners of certain 1996-1999 model year Jeeps, Dodge Ram, and Dodge Dakota vehicles, that the catalytic converter warranty on their vehicles is being extended to 10 years or 120,000 miles. All of these vehicles will also be covered for at least one year without mileage limitation, and for 2 years if the vehicle fails a state emissions inspection due to a defective original equipment catalytic converter. An extended catalytic converter warranty will also be provided to 6,100 non-California model year 2000 heavy-duty Dodge Ram trucks to cover them for at least 12 months without mileage limitation.
Chrysler will also send notices to approximately 300,000 owners of the affected vehicles informing them of the potential catalytic converter failure and reminding them that their original catalytic converters are still covered by the original 8-year/80,000-mile warranty. Owners of the remaining 500,000 vehicles will receive a recall notice for repair of the defective OBD system on their vehicles. For those recalled vehicles, the catalytic converter will be inspected and repaired if found to be defective.
Chrysler will also establish procedures to reimburse owners of vehicles covered by the settlement's extended warranty or recall provisions who, before receiving Chrysler's notice of the remedial measures announced today, paid out of their own pockets for the repair or replacement of a defective original equipment catalytic converter.
The proposed consent decree is subject to a
30-day public comment period and final court approval. A copy of the consent
decree is available at: http://www.usdoj.gov/enrd/open.html
and http://epa.gov/compliance/resources/cases/civil/caa/daimlerchrysler.html
For more information on EPA's on-road vehicle and
engine emissions programs see: http://www.epa.gov/otaq/hwy.htm
Help EPA protect the environment. To report an environmental violation, visit EPA's website at: http://www.epa.gov/compliance
Volkswagen of America Settlement Fact Sheet
Manufacturers of new motor vehicles must file an emission defect information report (EDIR) with EPA not more than 15 working days after an emission-related defect is found to affect 25 vehicles or engines of the same model year.
Violation:
Volkswagen of America, Inc. failed file EDIR for one
year after discovery of emission defect
Civil Penalty: $1.1 million
Remediation/Injunctive Relief:
• At cost of $26 million, recall in January 2002 of 329,422 Golfs, Jettas and New Beetles, model years 1999-2001, sold with the defect. VW reprogrammed oxygen (O2) sensor control software on 88 percent of affected vehicles; 27 percent were fitted with new O2 sensors.
• At estimated cost of $660,000, VW implemented an enhanced defect tracking, investigating and reporting system.
Background:
• The defect occurs gradually on engine start-up in cool and damp environments, when the O2 sensor (part of the emissions control system) cracks from "thermal shock." The dashboard indicator light illuminates, telling the owner to "Check Engine."
• Defect causes higher levels of nonmethane hydrocarbons (NMHC) and carbon monoxide (CO) than Federal emission standards allow. NMHC are key reactants in the production of ozone, a major contributor to cancer-causing smog. CO impairs ability to breathe and is especially harmful to children, people with asthma and the elderly.
Timetable:
• Winter 1999-2000 - Volkswagen receives numerous warranty claims associated with cracked O2 sensors.
• May, 2001 - EPA finds problem in a random surveillance test.
• June, 2001 - VW submits EDIR.
• January 2002 - VW begins recall.
SETTLES FOR $4,400,000
The Air Resources Board fined Nissan Motor Company in March 2009 $4.4 million for failing to meet requirements concerning the diagnostic equipment that monitors tailpipe emissions on most of its 2005-2007 models - more than 450,000 vehicles.
On-board diagnostic systems are incorporated into vehicle computers to ensure tailpipe emissions stay at permissible levels. If a problem is detected, the system turns on a "check engine" light to alert the driver.
The ARB discovered Nissan's problems in 2007 during a routine compliance review. The problems concerned inadequate monitoring of engine sensors that govern proper fuel system operation and whether monitoring takes place as frequently as required.
Nissan's settlement with the ARB requires it to pay $3 million to the California Air Pollution Control Fund, which provides funding for projects and research to improve California's air quality. It must also pay $1.2 million to the Environmental Education Initiative and $200,000 to the National OBD Clearinghouse.