Brazil watchdog investigates Volkswagen's diesel emissions
SAO PAULO, Sept 25 (Reuters) - Brazil's environmental agency Ibama is investigating whether Volkswagen AG has violated domestic emissions laws and could levy a fine of up to 50 million reais ($13 million), the regulator said in a note late on Thursday.
If the investigation finds that Volkswagen set up vehicles to cheat on diesel emissions tests in Brazil, as it admitted to doing in the Unites States, Ibama said it would require the carmaker to correct the issue with all models involved.
Volkswagen is replacing its chief executive after confirming that 11 million vehicles had been programmed to cut the apparent emissions from diesel engines during tests, sparking the biggest business scandal in its 78-year history.
The only diesel-powered vehicle in Volkswagen's Brazilian passenger line-up is the four-cylinder Amarok pickup truck. The carmaker has sold nearly 84,000 Amaroks in Brazil since 2010, according to dealership association Fenabrave.
The company has not yet said which models and production years are affected by the scandal. Volkswagen representatives in Brazil declined to comment immediately on the Ibama probe.
($1 = 3.9 Brazilian reais) (Reporting by Alberto Alerigi Jr.; Writing and additional reporting by Brad Haynes; Editing by Marguerita Choy)
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