Re: More bad government
It is VW that is corrupt for scrimping on pollution control in order to increase their profits. Yes the engines in question were certified by the EPA, but VW cheated on the tests by using software that fits the Clean Air Act's definition of a defeat device. That is fraud. There is not a requirement for cars to meet the emission limits "in all driving conditions". The regulations realize that in certain situations emissions may need to be higher, for example cold weather, climbing hills etc. The cars do have to honestly meet the limits during the EPA test cycle. VW/Audi's in question did not.
Other governments as well as other US government agencies are also investigating VW, contrary to what you say (Korea, Sweden, Canada, New York State etc.). Yes there are a lot of possible lawsuits -- that is what happens when companies break the law. VW should have made sure that it was obeying the law. In Germany it might have sufficient influence to get away with things -- not so in the US. Why do company executives make the big bucks? Because they are responsible for what the company does. If the company does well, the execs do too. If the company breaks the law and hurts people, the executives need to bear responsibility for that too.
Yes VW's actions have hurt customers and investors as well as people walking their dog beside the road. Those who can prove they were hurt as a result of VW's fraud have the right to sue.
Serious corporate environmental crimes, like this, require serious punishment. In the last 8 years, while committing this fraud, VW Group has grown rapidly and has swallowed up quite a few other manufacturers. Why should it be allowed to keep the fruits of its crime?