Germany Fines Volkswagen $1.2 Billion Over Diesel Scandal

14 Juin, 2018, 10:29 | Auteur: Auguste Feret
  • Volkswagen diesel engine

Volkswagen AG will pay a 1 billion euro ($1.2 billion) fine imposed by German prosecutors for cheating to get around diesel-emissions regulations, closing one chapter in a three-year-old crisis even as new developments arise.

The latest billion-dollar fine follows the car-maker being found guilty for similar offences in the United States, where VW agreed to pay $US4.3 billion ($A5.7b) to resolve both a criminal and civil charge. The fine was imposed by the public prosecutor's office in Braunschweig, a city in Lower Saxony, Germany for organisational deficiencies which failed to prevent "impermissible software functions" from being installed in cars between 2007 and 2015, the report said.

The automaker said it accepted the penalty.

The fine is the latest blow to Germany's auto industry which can not seem to catch a break from the diesel emissions crisis. Earlier this week, the German government ordered Daimler to recall 240,000 cars in Germany due to illegal emissions-control devices.

Also happening this week is German prosecutors widening its emissions cheating probe to include Audi and its Chief Executive Rupert Stadler.

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The €1bn fine does, however, end regulatory offence proceedings against VW, which the Wolfsburg-based carmaker said it assumed would help to settle further administrative proceedings against it in Europe.

"We must plan for interruptions to production in the third quarter", VW chief executive Herbert Diess told workers.

"Courts will now hardly be able to dismiss consumer complaints", said Jan-Eike Andresen of platform MyRight which has mandated US law firm Hausfeld to pursue civil claims.

The German auto maker announced the fine on Wednesday evening, saying it had agreed the "administrative penalty" after an investigation by the public prosecutor in Braunschweig, the city close to the company's Wolfsburg headquarters.

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