The diesel version of the Audi A3 is one of the vehicles facing recall to fix a "defeat device" in its emissions control system.

Volkswagen will have to recall about 500,000 diesel-powered vehicles, the government has declared, because it surreptitiously equipped them with software designed to detect when they were undergoing emissions testing and later allow the vehicles to emit higher levels of pollution.

The Environmental Protection Agency has issued a notice of violation alleging that VW created a “defeat device,” more accurately software that could detect when a vehicle was undergoing emissions testing. In such a situation, the onboard pollution control system would operate more aggressively. Otherwise, the government alleges, those controls would be relaxed.

“Using a defeat device in cars to evade clean air standards is illegal and a threat to public health,” said Cynthia Giles, an assistant administrator with the EPA’s Office of Enforcement and Compliance.

Diesel technology, while wildly popular in Europe, had largely vanished from the U.S. market until recently because of the high levels of particulates and oxides of nitrogen the engines naturally produce. VW has been one of the most aggressive manufactures in reviving the U.S. diesel market, claiming its pollution control technology could meet the latest emissions standards.

(Calif backs off major cuts in petroleum usage. Click Here for the full story.)

The challenge has been to ensure that such so-called “Clean Diesels” would deliver the level of performance customers demand, while maintaining the higher fuel economy that is one of the big selling points for diesel technology.

Apparently, the government claims, VW was able to meet the often conflicting needs for low emissions, high mileage and good performance by tricking regulators during routine testing. The government has a set series of tests that the defeat devices could detect and then temporarily turn on full emissions control. Under all other circumstances, the control systems would be defeated or at least relaxed.

The German automaker acknowledged it has received notice of the recall order and said in a statement it “cooperating with the investigation; we are unable to comment further at this time.”

(VW, Audi plan to “electrify” their entire line-ups. Click Here for more.)

The recall covers 482,000 vehicles equipped with 4-cylinder diesel engines, including the VW Jetta, Beetle and Golf models sold during the 2009 to 2014 model-years, the Audi A3 sold during the same period, and the 2014-15 VW Passat.

The EPA, the State of California and the U.S. Justice Department are investigating the allegation. It’s not clear if further action could follow.

But federal regulators and legal authorities have begun taking a tougher stance when the auto industry violates emissions and safety regulations. Justice this week agreed to settle a criminal investigation into General Motors’ handling of a deadly ignition switch defect only after the maker agreed to three years of probation and a $900 million fine. Fiat Chrysler earlier this year paid a record fine to the National Highway Traffic Safety Administration for mishandling numerous safety recalls.

Last November, Korean carmakers Hyundai and Kia paid a combined $300 million fine for overstating th fuel economy of 1.2 million vehicles. They spent millions more to compensate owners. Ford Motor Co. also came under fire for false mileage claims on a number of its vehicles.

(For more on GM’s ignition switch settlement, Click Here.)

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