Audi fined $1.3b over diesel engine emissions scandal

Audi fined $1.3b over diesel engine emissions scandal
Audi fined $1.3b over diesel engine emissions scandal

In September 2015, Volkswagen admitted rigging around 11 million diesel vehicles with software that enabled them to pass emissions tests.Reuters: Axel Schmidt

German law enforcement authorities have fined Volkswagen's luxury division Audi 800 million euros ($1.3 billion), as the fallout continues after the carmaker sold cars rigged to cheat on emissions tests.

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

In September 2015, parent company Volkswagen admitted rigging around 11 million diesel vehicles with software that enabled them to pass emissions tests even though emissions in real driving were much higher.

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 prosecutors' statement said the resolution of the case did not affect a related investigation of individuals.


How did German carmaker Volkswagen rig emissions tests in diesel-powered vehicles and fool US regulators?

Former Audi chief Rupert Stadler remains in jail while prosecutors investigate individual involvement in the diesel scandal, and Volkswagen earlier this month cut ties with him.

Volkswagen has paid more than $US30 billion ($42 billion) in fines, settlements and recall costs since the scandal broke. Former chief Martin Winterkorn and other executives face criminal charges in the United States, though they cannot legally be extradited. Two Volkswagen executives were sent to prison in the US.

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

It said 5 million euros of the fine was imposed for the oversight failure and 795 million euros represented Audi's forfeiture of economic gains from the violation, including profits from selling the cars, competitive advantages, and savings on the costs of producing vehicles that actually would have conformed to legal requirements.

Audi said it would not contest the fine. It said the amount would mean that the division would "significantly undercut" its financial targets for the current year.

"Audi accepts the fine and, by doing so, admits its responsibility," the company said in a statement.

AP

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