Dieselgate: Volkswagen fined €1 billion by Germany

Cornelia Mascio
Giugno 14, 2018

The state prosecutor in the German city of Braunschwieg just hit Volkswagen with a fine of €1 billion ($1.2 billion) for the diesel scandal.

The latest billion-dollar fine follows the car-maker being found guilty for similar offences in the USA, where VW agreed to pay $US4.3 billion ($A5.7b) to resolve both a criminal and civil charge.

"As a result of the administrative order imposing the fine, the active regulatory offence proceedings conducted against Volkswagen will be finally terminated", the company said.

This means that the company admits that diesel cars were fitted with so-called "defeat devices" which worked out when they were having their emissions levels tested. Germany's government on Monday ordered Daimler to recall almost 240,000 cars fitted with illicit emissions-control devices, part of a total of 774,000 models affected in Europe as a whole.

The prosecutor's office said in a statement it had "ascertained a violation of supervisory duties", adding that the fine did not address civil claims or claims by vehicle owners.

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

The prosecutor's office in Braunschweig ordered the fine against the carmaker for organisational deficiencies in supervision that failed to prevent "impermissible software functions" from being installed in 10.7m cars between 2007 and 2015.

Further steps would be taken to overcome the diesel cheating scandal and to restore trust in the company, Diess said.

The one billion euro fine was not accounted for in Volkswagen's 25.8 billion euro provision for Dieselgate-related fines, payouts, fixes and penalties, and would impact upon the Wolfsburg carmaker's earnings, analysts at Evercore ISI said.

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