Global diesel emissions cheating scandal has cost VW billions but the automaker continues to boost sales and book profits

Global diesel emissions cheating scandal has cost VW billions but the automaker continues to boost sales and book profits

Volkswagen was fined EUR1bn (US$1.18bn) over diesel emissions cheating in what was one of the highest ever fines imposed by German authorities against a company, public prosecutors said.

According to Reuters, the German fine followed a US plea agreement from January 2017 when VW agreed to pay a criminal fine of US$4.3bn to resolve criminal and civil penalties.

"Following thorough examination, Volkswagen AG accepted the fine and it will not lodge an appeal against it. VW, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step toward the latter being overcome"

"Following thorough examination, Volkswagen AG accepted the fine and it will not lodge an appeal against it. Volkswagen AG, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step toward the latter being overcome," the automaker said in a statement.

It added: "The administrative order provides for a fine of EUR1bn in total consisting of the maximum penalty as legally provided for of EUR5m and the disgorgement of economic benefits in the amount of EUR995m."

"According to the findings of the investigation carried out by the Braunschweig public prosecutor, monitoring duties had been breached in the powertrain development department in the context of vehicle tests.

"According to the results obtained by the Braunschweig public prosecutor, they were concurrent causes of 10.7m vehicles in total with the diesel engines of the types EA 288 (Gen3), in the United States and in Canada, and EA 189, world-wide, being advertised, sold to customers, and placed on the market with an impermissible software function in the period from mid-2007 until 2015.

"As a result of the administrative order imposing the fine, the active regulatory offence proceedings conducted against Volkswagen will be finally terminated. Volkswagen assumes that such termination of the proceedings will also have significant positive effects on further active administrative proceedings in Europe against Volkswagen AG and its subsidiaries," the statement added.

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