Volkswagen's Audi fined more than a billion dollars over diesel emissions scandal

Roman Schwartz
October 17, 2018

Following VW's €1 billion fine in June, German prosecutors have penalized Audi as well with the whopping amount of €800 million ($928 million).

A premium German auto brand Audi was fined 800 million euros which are around $927 million for violations tied to heavily polluting six- and eight-cylinder diesel engines.

Prosecutors in Munich said on Tuesday the fine was imposed because Audi management neglected its oversight duties in selling cars with engines made by it and group partner Volkswagen that did not conform to legal limits on harmful emissions of nitrogen oxides.

"The administrative proceeding against Audi AG opened because of the diesel scandal is hereby closed in a legally binding way", Munich prosecutors said in their own statement.

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

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The penalty comes on top of total costs in fines, recalls, refits and buybacks of over €27 billion that the parent Volkswagen had to pay out over the dieselgate scandal.

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

The penalty, which Audi accepted and won't appeal, consists of €5m (about R82m) for regulatory offenses, with the remainder a repayment of economic benefits as a result of the cheating, Audi said on Tuesday in a statement.

Audi says the V6 and V8 diesel engines in question did meet regulatory requirements, and it also "failed to discover" diesel engines supplied to it from Volkswagen between 2004 and 2018 had an "impermissible software function". Former Audi Chief Executive Officer Rupert Stadler has been in custody since June after allegedly tampering with a witness in the investigation.

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