Volkswagen fined €1 billion over Dieselgate scandal

German prosecutors on June 13 imposed a fine of €1 billion on Volkswagen AG in connection to the Dieselgate emissions-cheating scandal. The penalty has been described as one of the highest ever levied on a German company.

According to the findings of the investigation carried out by the Braunschweig public prosecutor, Volkswagen has breached monitoring duties in the Powertrain Development department in the context of vehicle tests.

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

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

As a result of the administrative order imposing the fine, the active regulatory offence proceedings conducted against Volkswagen in Germany 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 the Volkswagen Group.