The European Union suspects seven EU members of having failed to crack down on emissions cheating by the German carmaker. Germany claims that current EU law in the area is unclear.
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Germany sued for breaking EU emissions law
01:05
The European Commission on Thursday began the so-called "infringement procedures," calling Germany, Britain, Spain and Luxembourg to account for not imposing the same kind of penalties Volkswagen faced in the United States for using illegal software to mask health-harming emissions.
The Czech Republic, Lithuania and Greece have been singled out for having national legislations that did not even allow for fining the car industry over potentional violations.
Germany and Britain also stand accused of refusing to disclose information on possible emissions irregularities in VW vehicles gleaned in national investigations this year.
The Commission, which is the European Union's executive, said in a statement that it was acting on the grounds that the the seven member states "have failed to fulfil their obligations" under EU law.
"National authorities across the EU must ensure that car manufacturers actually comply with the law," said European Industry Commissioner Elzbieta Bienkowska in a statement.
Worldwide repercussions
German carmaker Volkswagen, Europe's largest, admitted in September 2015 to installing software in its diesel vehicles that falsified test results for nitrogen oxide. The revelation led to mass recalls, the resignation of its chief executive and the imposition of billions of dollars in compensation settlements in the US.
The legal action launched on Thursday is the first step in infringement procedures and gives member states two months to respond. If an adequate response is not forthcoming, the EU could take them to the EU court in Luxembourg.
Germany, which is by far the EU's biggest carmaking state, has complained that EU laws on the matter are poorly framed.
VW itself claims that the so-called "defeat devices" installed in its diesel vehicles were not illegal under EU law.
10 things you (probably) didn't know about Volkswagen
'Diesel-gate' has everyone talking about the German carmaker. But what do you really know about the company that brought you Das Auto?
Image: picture-alliance/dpa/I. Wagner
The people's car
Did you know that Volkswagen - or the 'people's car' - was Adolf Hitler's brainchild, and that it was developed by Porsche founder Ferdinand Porsche? In 1938, Hitler even had built an entire city just to house the factory and its workers. First known as "City of the [Kraft durch Freude] Car at Fallersleben," it was renamed Wolfsburg on May 25, 1945. To this day, the city remains home to VW.
Image: DW/J. Dumalaon
The world's #1 love-bug
From Hitler's wet dream on wheels to the world's favorite love-bug: The original Beetle - known in Germany as 'Der Käfer' - ruled the list of the world's best-selling car for much of the 20th century. By the time production was discontinued in 2003, more than 21.5 million Beetles had been sold worldwide.
Image: DW/E. Schuhmann
Volkswagen's many faces
The company has come a long way since the 1930s. The Volkswagen Group's garage currently fits 12 brands under its roof. Audi, Bentley, Lamborghini, Porsche and Skoda are among its best-selling subsidiaries, accounting for 37 percent of 2014 sales.
Image: Audi AG
Market domination
Today, Volkswagen really has become the "People's Car": The Group accounts for more than every third car - 36 percent, to be exact - sold in Germany.
Image: picture-alliance/dpa
1 out of 10 cars worldwide
Globally, more than 1 out of every 10 cars sold in 2014 was a Volkswagen Group brand. The company sold more than 10.2 million vehicles in that year. 7 out of 10 were sold outside Germany.
Image: picture-alliance/dpa/Z. Junxiang
US market an uphill battle
The coveted US market has proven to be a real thorn in the eye for the German carmaker. Just 6 percent of its cars - or some 600,000 - were sold abroad. Despite huge investments, its market share there has been stuck at about 2 percent, trailing far behind competitors like GM, Ford and Toyota.
Image: picture-alliance/dpa
Pole position at stake?
In July, 2015 Volkswagen overtook Toyota as the world's top-selling carmaker. It's also the world's biggest automotive company by revenue. In 2014, it reported sales of 202.5 billion euros. Profit after tax came in at 11.1 billion euros. But after the emissions scandal, analysts warn VW's pole position could be at risk.
Image: picture-alliance/dpa
Global employer
As of December 31, 2014, the Group employed nearly 600,000 workers, making it one of the biggest employers worldwide. More than a third - some 270,000 - worked at one of its German locations.
Image: picture alliance/dpa
Germany's biggest industry
The auto industry is the largest sector in the Germany economy, fuelled by the so-called 'Big Three' - Daimler, BMW and VW. Combined, the industry employs nearly 800,000 people - or almost 2 percent of the German workforce.
Image: picture-alliance/dpa/B. Weißbrod
German cars drive exports
The German car industry's total revenue nearly topped 370 billion euros in 2014. It made up about one-fifth of the country's exports, and contributed around 3 percent to German GDP.