Emissions Cheating Scandal Could Cost Volkswagen $18 Billion

BALTIMORE (WJZ) -- A cheating scandal could cost Volkswagen $18 billion dollars. The Justice Department has filed suit against the German automaker for rigging thousands of clean diesel cars to cheat emissions tests.

The scandal affected 11 million cars worldwide, and thousands here in Maryland.

Meghan McCorkell has more on the impact.

The feds have filed a lawsuit, as deceived consumers also seek action.

When Nicole Barnard bought her new Volkswagen Jetta this summer, she thought she was paying more for a clean diesel car.

"I think this was particularly egregious. This was intentional," said Barnard.

Now she's part of a class action lawsuit after discovering Volkswagen installed a device to cheat emissions tests. Sophisticated software allowed cars to pass tests they should have failed.

In reality, emissions levels climbed 10 to 40 times above EPA levels.

"This wasn't, 'Oops, we messed up.' You know? This was, 'We intended to deceive,'" said Barnard.

The Justice Department has now sued Volkswagen, too, for violating air pollution laws.

"Our company was dishonest, and in my German words, we've totally screwed up," said Michael Horn, Volkswagen CEO.

Volkswagen could be fined up to $18 billion, as they negotiate a massive mandatory recall.

"The damages to Volkswagen financially are going to be tremendous," said Ryan Perlin, attorney.

Attorney Ryan Perlin represents some Volkswagen owners, who say they're now stuck with cars they can't sell.

"Not only did they pay more for something they weren't getting, they've been driving their car around for years now while the car was emitting emissions that were highly polluting the environment," said Perlin.

The cheating scandal impacts around 600,000 cars sold here in the U.S. -- an estimated 10,000 are here in Maryland. Volkswagen has stopped selling the cars.

The company has launched an independent investigation.

The state of Maryland has also filed suit against Volkswagen for air pollution.

A spokesperson for Volkswagen says the company will "continue to cooperate with all government agencies investigating these matters."