VW says will pay 1 bn euro German fine over emissions cheating

Another billion down the drain over dieselgate
Another billion down the drain over dieselgate

Auto giant Volkswagen said Wednesday it would pay a one-billion-euro ($1.2 billion) fine imposed by German prosecutors over its diesel emissions cheating.

"The Braunschweig public prosecutor issues an administrative order against Volkswagen AG in the context of the crisis and imposes a fine of EUR1 billion on Volkswagen AG", the company said in a statement.

The German car giant said it had "accepted the fine" and would not lodge an appeal.

"Volkswagen AG, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step towards the latter being overcome."

The mammoth carmaker admitted in 2015 to fitting 11 million vehicles worldwide with "defeat devices"—software designed to trick regulators into thinking cars met .

In fact, output of harmful fine particulates and nitrogen oxides (NOx), which can cause respiratory and heart diseases, was far higher than legally permitted.

VW's admission had so far cost it more than 25 billion euros in buybacks, fines and compensation, and the company remains mired in legal woes at home and abroad.

VW's chief executive at the time of the diesel scandal Martin Winterkorn stepped down soon after the news broke, while successor Matthias Mueller was hastily replaced earlier this year.

Both are suspected of knowing earlier than they have so far admitted about the , meaning they failed in their duty to inform investors in the car giant about the financial risks.

US prosecutors also indicted Winterkorn last month, saying he knew of the company's emissions cheating as early as May 2014 but decided to continue.

The "dieselgate" saga has cast a pall over Germany's vaunted car industry, with suspicions of emissions manipulation since spreading to other companies.

Luxury carmaker BMW and Mercedes-owned Daimler have both had their offices raided by investigators searching for evidence of possible cheating.

VW said in its statement that prosecutors had found that "monitoring duties had been breached ... in the context of vehicle tests".

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 said.


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© 2018 AFP

Citation: VW says will pay 1 bn euro German fine over emissions cheating (2018, June 13) retrieved 20 October 2019 from https://phys.org/news/2018-06-vw-bn-euro-german-fine.html
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