I am more willing to have the market punish VW long term, the owners of said cars already have suffered because of VWs actions but beyond any step the government can do public opinion has already shifted against VW and Audi.

If any punishment were to meted out I would assign a value similar to how insurance companies must when a vehicle is less than a year old is involved. There are loss of value rules already in place. Use those.

As for noticeable changes in pollution, that is laughable. You already see more significant changes to pollution just by the school year ending and all those buses being off road. Let alone in winter pollution goes up as more cars run rich to maintain operating temperatures.

We should not use government to punish innocent buyers. Government should be used to protect them