Germany slaps Audi with 800M euro fine for diesel misdeeds

  • Germany slaps Audi with 800M euro fine for diesel misdeeds

Germany slaps Audi with 800M euro fine for diesel misdeeds

Audi has agreed to pay an €800-million (that's about R13,2-billion) fine for its role in the Volkswagen Group's diesel emissions scandal, admitting its "responsibility for deviations from regulatory requirements".

Parent Volkswagen Group also warned its earnings would be affected.

The Ingolstadt-based automaker released a statement confirming it had "accepted the fine" from the Munich public prosecutor and that it would not lodge an appeal against it.

Volkswagen Group received a similar 1 billion euro fine in June when prosecutors in Braunschweig also used a so-called administrative order to punish VW for oversight problems which allowed millions of polluting cars to hit the road.

Prosecutors in Munich said Tuesday that 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.

Investigators pursued Audi over V6 and V8 engines it built into its own vehicles, VW's own-brand cars and models from fellow subsidiary Porsche as well as over Audi vehicles fitted with cheating VW-built engines.

The cheating emissions case covered around 4.9 million Audi cars sold in Europe, the USA and elsewhere between 2004 and 2018. Former chief Martin Winterkorn and other executives face criminal charges in the United States, though they can not legally be extradited.

Earlier this month, Volkswagen broke the contract of Audi Chief Executive Rupert Stadler, who is now being investigated over his alleged involvement in the diesel cheating.

Shares in Volkswagen plummeted in the moments after the announcement of the fine Tuesday, but quickly bounced back to gain 2.6% at €148.14 around 11:30 am (0930 GMT), topping the DAX index of blue-chip German shares.