* Stepped-up tests apply to both gasoline, diesel cars
* Tests will measure CO2 and smog-forming pollutants
* More tests could add costs to carmakers
* BMW, Daimler insist they do not manipulate results
(Recasts first sentence; adds broadening of tests, background)
By Timothy Gardner and David Morgan
WASHINGTON, Sept 25 (Reuters) - U.S. environmental
regulators on Friday announced tighter and broader auto
emissions tests to detect "defeat" devices in all cars and light
trucks in the United States and Canada, including gasoline
engines, after Volkswagen (XETRA:VOWG) VOWG_p.DE admitted it cheated on
diesel emissions.
The Environmental Protection Agency notified auto
manufacturers in a letter saying authorities could require
additional tests for "any vehicle" to determine whether it meets
emission standards under normal road conditions, not just at
controlled testing facilities.
The change could mean higher costs for automakers,
particularly any that become subject to recalls or production
changes, as well as bigger regulatory hurdles in obtaining
certification that vehicles meet North American emissions
standards.
Additional tests will look not only for nitrogen oxide
emissions linked to smog and acid rain, but also for carbon
dioxide, a primary greenhouse gas emitted by gasoline and diesel
engines that is a proxy for a vehicle's fuel efficiency.
European regulators on Friday promised separately to show
"zero tolerance" for cheating on emissions tests as European
Union lawmakers pushed for tougher, real-world testing of
vehicles. ID:nL5N11V1K6
"We aren't going to tell them what these tests are. They
don't need to know," Chris Grundler, EPA's head of
transportation and air quality, told reporters in a
teleconference.
Volkswagen could face $18 billion in fines from the EPA
after it admitted using software in diesel cars that evades
emissions tests. ID:nL5N11V1I6 This week Volkswagen said 11
million cars were fitted with engines that had shown a
noticeable deviation in emissions levels between testing and
road use.
Grundler said Volkswagen embedded a sophisticated algorithm
within 100 million lines of software code to defeat current
emissions test procedures.
Separately, the U.S. Department of Justice said it is
working closely with the EPA in the VW investigation. "We take
these allegations, and their potential implications for public
health and air pollution in the United States, very seriously,"
a spokesman said.
Two other German automakers issued statements insisting that
they do not manipulate or rig emissions tests.
Bayerische Motoren Werke AG BMWG.DE , whose BMW X5 vehicle
met EPA standards in early tests that called Volkswagen's into
question, said "our exhaust treatment systems are active whether
rolling on the test bench or driving on the road."
Daimler AG DAIGn.DE , the maker of Mercedes-Benz,
categorically denied allegations by lobby group Deutsche
Umwelthilfe that it had rigged emissions data for its vehicles.
ID:nF9N11E00A
Meanwhile, environmental groups welcomed the news of
enhanced testing but wondered how effective the effort would be.
"The VW cheating scandal shows car companies can't be put on
the honor system," said Frank O'Donnell, president of Clean Air
Watch, who added that it remains to be seen whether EPA can move
quickly to improve testing.
The EPA will test cars under a partnership that also
includes regulators at Environment Canada and the California Air
Resources Board.
Grundler said he expects solutions to be found "relatively
quickly" for 2015 model year Volkswagen vehicles. But he said
older models, other than Passats, could require "additional
engineering development" because of changes in technology.
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