Volkswagen Accepts $1.2 Billion Penalty in Diesel Scandal

Volkswagen AG accepted the fine and, by doing so, admitted its responsibility.

The Braunschweig public prosecutor issued an administrative order against Volkswagen AG in the context of the company's diesel cheating scandal and imposed a fine of €1 billion ($1.2 billion) on the company. Volkswagen AG accepted the fine and, by doing so, admitted its responsibility.

The company's announcement said the fine is the maximum as legally provided for of €5 million and the disgorgement of economic benefits in the amount of €995 million.

According to the findings of the prosecutor's investigation, monitoring duties had been breached in the Powertrain Development department in the context of diesel vehicle tests, causing 10.7 million vehicles 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 from mid-2007 until 2015.

The company said after a thorough examination, Volkswagen AG accepted the fine and will not lodge an appeal against it. Volkswagen AG, by doing so, admits its responsibility for the diesel crisis and considers this a further major step toward overcoming it. As a result of the administrative order imposing the fine, the active regulatory offense proceedings conducted against Volkswagen will be terminated.

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