The Volkswagen emissions scandal, sometimes known as Dieselgate or Emissionsgate, began in September 2015, when the United States Environmental Protection Agency (EPA) issued a notice of violation of the Clean Air Act to German automaker Volkswagen Group. The agency had found that Volkswagen had intentionally programmed turbocharged direct injection (TDI) diesel engines to activate their emissions controls only during laboratory emissions testing, which caused the vehicles' output to meet US standards during regulatory testing. However, the vehicles emitted up to 40 times more in real-world driving. Volkswagen deployed this software in about 11 million cars worldwide, including 500,000 in the United States, in model years 2009 through 2015.
In 2013, the International Council on Clean Transportation (ICCT) commissioned the West Virginia University Center for Alternative Fuels Engines and Emissions (WVU CAFEE) to test on-road emissions of diesel cars sold in the U.S. Researchers at WVU CAFEE, who conducted live road tests in California using a Japanese on-board emission testing system, detected additional nitrogen oxide () emissions from two out of three tested vehicles, both made by Volkswagen. In May 2014, ICCT published WVU CAFEE's findings and reported them to the California Air Resources Board (CARB) and the United States Environmental Protection Agency (EPA).
In September 2015, the EPA announced that Volkswagen had violated the Clean Air Act by installing illegal software into their diesel vehicles. Regulators in multiple countries began to investigate the automaker, and its stock price fell in value by a third in the days immediately after the news. Volkswagen Group CEO Martin Winterkorn resigned, and the head of brand development Heinz-Jakob Neusser, Audi research and development head Ulrich Hackenberg, and Porsche research and development head Wolfgang Hatz were suspended. Volkswagen announced plans in April 2016 to spend ( at April 2016 exchange rates) in relation to the scandal, and agreed in June 2016 to pay up to $14.
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