Volkswagen fined €1bn for diesel emissions scandal
German automobile giant, Volkswagen has been handed a €1bn (£880m) fine by German prosecutors over its diesel emissions scandal. The fine is one of the highest ever imposed by German authorities against a company.
The prosecutor found Volkswagen had sold more than 10 million cars between mid-2007 and 2015 that had the controversial emissions-test-cheating software installed. The car company said it had no plan to appeal against the fine, admitted its responsibility for the diesel crisis.
VW chief executive Herbert Diess said by accepting the fine Volkswagen takes responsibility for the diesel crisis.
“Further steps are necessary to restore trust in the company and the auto industry,” he added.
The fine in Germany follows a US plea agreement last year, when VW agreed to pay a criminal fine of $4.3bn to resolve criminal and civil penalties.
VW does still face a number of civil lawsuits, brought by disgruntled car owners and shareholders. It’s not clear yet what impact VW’s admission of “responsibility for the diesel crisis” will have on those proceedings.
The total cost of the scandal has been much higher. VW has set aside $30bn to pay for its US bill, which includes fixing cars, buying back cars, clean air fines, penalties and compensation.
The Volkswagen scandal erupted in September 2015, when the company admitted that nearly 600,000 cars sold in the US were fitted with “defeat devices” designed to circumvent emissions tests.
Since then it has emerged that VW installed emissions-cheating software in nearly 11 million vehicles worldwide.
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