German prosecutors fine Audi $927M over diesel scandal

Andrew Cummings
October 17, 2018

Volkswagen's subsidiary Audi agreed to pay an €800 million ($926 million) fine in Germany to settle a probe over the carmaker's role in the emissions cheating scandal that shook the auto industry three years ago.

It also accepted a €795m penalty for the economic benefits the business gained from the offending engines, imposed by the prosecutors in Munich, whose jurisdiction covers Audi's Ingolstadt headquarters.

The huge fine is "due to deviations from regulatory requirements in the context of certain V6 and V8 diesel aggregates and diesel vehicles manufactured or distributed by Audi AG", the automaker says in a statement.

In total, the case dealt with nearly 5 million cars worldwide, built between 2004 and 2018.

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 prosecutors said this included profits from the sales of affected vehicles. These vehicles were equipped with illegal software that curtailed the vehicles' emissions during testing, but when the vehicles hit the road, they polluted more than legally permitted.

Volkswagen cancelled the contract of Audi Chief Executive Rupert Stadler earlier this month who is under inquiry for suspected association in emissions cheating.

In total, the case dealt with nearly five million cars worldwide built between 2004 and 2018.

Prosecutors had jailed him in June, saying this was necessary to stop him trying to influence witnesses in his case over fraud and issuing false certificates.

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.

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