Saturday, 18 August 2018
Latest news
Main » VW Agrees to $1.2 Billion Fine as Diesel Crisis Grinds On

VW Agrees to $1.2 Billion Fine as Diesel Crisis Grinds On

14 June 2018

German carmaker Volkswagen said Wednesday it has been fined €1 billion by prosecutors in the German city of Braunschweig in connection with the Dieselgate scandal. Then, the automaker agreed to pay $4.3 billion to resolve both civil and criminal penalties relating to the installation of illegal software that allows its vehicles to circumvent US emission tests. The fine is among the largest imposed on a company in Germany's history, according to the prosecutor in the case, and it shows that the German automaker is still dealing with the fallout from a persistent pattern of lying to regulators.

"Following thorough examination, Volkswagen AG accepted the fine and it will not lodge an appeal against it. Volkswagen AG, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step toward the latter being overcome", the company said in a statement.

In the spiralling scandal, Germany ordered Monday the recall of some 774,000 Daimler vehicles across Europe, citing illegal defeat devices.

More news: 120 countries blame Israel for 'excessive' force against Palestinians

The fine is the latest blow to Germany's auto industry which can not seem to catch a break from the diesel emissions crisis.

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

This had led to 10.7 million cars "being advertised, sold to customers and placed on the market with an impermissible software function" in the US, Canada and worldwide between mid-2007 and 2015, the company said.

More news: LeBron James gets 'MVP' ovation in likely Cleveland farewell

"We must plan for interruptions to production in the third quarter", VW chief executive Herbert Diess told workers. "Further steps are necessary to gradually restore trust again in the company and the auto industry".

Analysts at Evercore ISI said the fine would likely help end all criminal investigations against VW in Europe, but would not settle shareholder lawsuits.

More news: The United States, Mexico And Canada Will Host The 2026 World Cup

VW Agrees to $1.2 Billion Fine as Diesel Crisis Grinds On