As I understand it, the emissions that the software fudges the testing for are only at that low a level for the USA and possibly Europe. Certainly not Australia.
The situation in Australia is that the type approval for the engine was given on the basis of it passing a complete set of tests, which it now appears, has been only managed by software to modify the vehicle performance during testing.
This probably means that the whole set of tests is invalid, and will need to be repeated without this coding, and probably will require modifications to pass the tests (with reduced performance and fuel economy, and increased CO2 emissions). For Australia, I expect the only change required will be new software. My brother, owner of a diesel Passat in the USA, thinks the cost for his car will exceed $4,000 and involve a lot of new hardware, and result in much higher urea consumption.
But the other side of things is that VW Australia has for several years been selling cars, ostensibly meeting certain emission standards, knowing that they deliberately do not meet these standards.
I suspect that lying in your statements about the standard of the cars you are applying for approval for carries very severe penalties, and is almost certainly a serious criminal offence. There are virtually certain to be significant financial penalties, as well as the cost of recalling a lot of cars, and if the individuals responsible can be identified, then they will face significant gaol time. Quite possibly after serving time in Germany and the USA! Some courts may follow the idea that the directors are responsible and try and lock them up. Saves trying to track down just who was responsible.
John



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