NOx is monitored 100% of the time at the catalyst, so there is NO WAY any TDI is out of compliance.
A University doing research on diesel emissions discovered two different VW diesels - a 2012 and a 2013 were grossly out of compliance and emitting way more than the legal amount of emissions.
Like I said, this is a Blackmail on the part of the EPA, VW will issue a recall, which will effectively do nothing to the car or how it performs. The software change will simply eliminate the "TEST" cycle so it cannot be interpreted to be thwarting emissions.
There isn't some "TEST" cycle the system is doing that's "confusing" the EPA. A University found that while on public roads the TDIs emitted substantially more NOx emissions than legally allowed. They notified the EPA. The EPA started investigating and noted that when the vehicle was run through the official EPA emissions test cycle, the vehicle passed emissions, but as soon as it was driven on road, the emissions skyrocketed.
They asked VW to explain the discrepancy, and VW tried claiming mechanical failure, but the EPA was able reproduce the issue on brand new vehicles, and VW had no answer. The EPA then told VW to either explain what's going on, or the 2016 TDIs will not get certification approval because these vehicles just aren't meeting emissions standards.
It's at this point VW admitted to having a software cheat programmed to pass the EPA emissions tests.
This isn't VW "caving" to some kind of blackmail. They know their goose is cooked.You don't admit to cheating federal emissions tests if you're not really guilty just to save face. That's like pointing a gun at yourself and pulling the trigger. The accusations by the EPA are extremely serious, and the consequences VW are facing could be quite dire. The EPA can fine them for every vehicle sold, demand a recall, a buyback, or who knows what else.
All of this, including the EPA's testing results are public record. The study done by the university is also public, and anyone with access to a NOx sensing exhaust sniffer will be able to verify and backup the EPA's claims.
I suspect VW will get fined, and the recall will simply be a reflash. I suspect SCR-equipped TDIs for the most part won't be affected to much - probably just higher DEF consumption. However, I think the NOx-adsorber equipped TDIs (the pre-SCR) models will have their fuel economy impacted significantly. U.S. diesel trucks equipped with NOx adsorbers had absolutely dreadful fuel economy (6.4 Powerstroke, early 6.7 Cummins)