* EU says has zero tolerance for fraud on emissions
* U.S. to require tests under normal road conditions, not
just in labs
* Change could be hard, industry is resistant -EU source
* Automakers could see higher costs from additional tests
By Timothy Gardner, David Morgan and Barbara Lewis
WASHINGTON/BRUSSELS, Sept 25 (Reuters) - Government
regulators on both sides of the Atlantic vowed on Friday to
toughen auto emissions tests in the wake of Volkswagen's
VOWG_p.DE admission it cheated on diesel emissions, but some
officials and environmentalists doubted the pledges would be
easily achieved.
The U.S. Environmental Protection Agency notified auto
manufacturers in a letter that they could require additional
tests for "any vehicle" to determine whether it meets emission
standards under normal road conditions, not just at controlled
testing facilities. ID:nL1N11V0ZZ
"We aren't going to tell them what these tests are. They
don't need to know," Chris Grundler, an EPA official, told
reporters.
Any changes could mean higher costs for automakers,
particularly any that become subject to recalls or production
changes, as well as bigger regulatory hurdles in obtaining
certifications.
Across the Atlantic, Elzbieta Bienkowska, the EU
commissioner responsible for industry, said: "Our message is
clear: zero tolerance on fraud and rigorous compliance with EU
rules. We need full disclosure and robust pollutant emissions
tests in place."
Earlier this week, Volkswagen (XETRA:VOWG) said 11 million vehicles
worldwide were fitted with software similar to the kind that
allowed the company to cheat U.S. tests, but said it was not
turned on in the bulk of them. Volkswagen could face $18 billion
in fines from the EPA after it admitted using software in diesel
cars that evades tests. ID:nL5N11V1I6
The company has said it would set aside $7.3 billion (6.5
billion euros) in its third-quarter accounts to help cover the
costs of the biggest scandal in its 78-year history, blowing a
hole in analysts' profit forecasts.
The EPA's Grundler said Volkswagen embedded a sophisticated
algorithm within 100 million lines of software code to defeat
current emissions test procedures and that regulators aim to
root out any so-called "defeat devices."
RESISTANCE TO CHANGE
The EU has developed emissions tests for real road driving,
not simply in labs, that will be phased in beginning in January
next year.
But an EU source said there could still be difficulties in
introducing new test procedures that match real-world driving
conditions after years of official inertia and industry
resistance to change.
Some auto companies have used strategies to pass tests in
lab conditions, such as using lighter materials in cars, and
that is why real-world driving tests are being rolled out in the
EU.
"I still think the industry will say it's hard because they
always do," one EU source said, speaking on condition of
anonymity.
Lucia Caudet, a Commission spokeswoman, said the Commission
only sets the regulatory framework. "Let me be very clear: the
Commission does not itself do the policing. This is done on the
ground by Member State authorities."
Despite pledges in several European nations to get tougher,
there are also pressures in many countries where many people
work for auto companies.
Germany faces resistance to any toughening of the test
regime from its powerful motor industry. It markets its cars on
a promise of clean performance, but tells the Commission its
engines take years to design and new pollution standards should
not be rushed.
In 2013, Chancellor Angela Merkel won a delay in a law
compelling carmakers to meet new CO2 emissions standards, saying
jobs were at stake.
More recently, EU officials, speaking on condition of
anonymity, said Germany had been lobbying for flexibility to
soften a proposed new law to supplement laboratory testing with
driving new cars on real roads.
In the United States, a clean air advocate expressed some
doubt that the EPA, which operates under a limited budget, could
adapt its testing to quickly make a difference.
"It remains to be seen" if EPA can quickly improve its
emissions testing, said Frank O'Donnell, president of Clean Air
Watch. "I hope so, but in the case of VW, this horse has already
left the barn."
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TAKE A LOOK-Volkswagen rocked by auto emissions scandal
ID:nL5N11U1VD
Graphic-How the defeat device works http://link.reuters.com/rys65w
Graphic-Car sales in the EU http://link.reuters.com/dys65w
Graphic-VW sales http://link.reuters.com/ruk35w
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