German prosecutors fine Audi 800-M euros for diesel violations

Marco Green
October 16, 2018

Volkswagen's subsidiary Audi agreed to pay an €800 million ($926 million) fine in Germany to settle a probe over the carmaker's role in the emissions cheating scandal that shook the auto industry three years ago.

The cheating emissions case covered around 4.9 million Audi cars sold in Europe, the USA and elsewhere between 2004 and 2018.

VW admitted in 2015 to building so-called "defeat devices" into 11 million cars worldwide.

According to the findings of the investigation carried out by the Munich public prosecutor, duties had been breached in the "emissions service/power engine approval" organisational unit in the context of the monitoring of vehicles regarding their regulatory conformity. The European Environmental Agency estimated that nitrogen oxides were responsible for around 75,000 premature deaths in the European Union in 2014.

Tuesday's fine comes on top of total costs in fines, buybacks and refits of more than €27 billion that Volkswagen has had to pay out over its "dieselgate" scandal. The Wolfsburg-based company warned the latest fine will directly affect its 2018 earnings as well. Sales executive Bram Schot is acting as interim CEO.

Prosecutors said the failure of proper corporate oversight by Audi AG enabled deliberate wrongdoing by individuals.

VW was fined for developing and selling polluting four cylinder engines, while prosecutors in Munich at the time said they were examining whether to impose similar fines Audi.

Audi said the fine would have an impact on its annual earnings. It said the amount would mean that the division would "significantly undercut" its financial targets for the current year.

Audi said that by accepting the administrative order "further important proceedings".

A similar 1 billion-euro fine was imposed on Volkswagen by prosecutors in Braunschweig in June.

Other reports by Click Lancashire

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