Audi Hit with $925m Fine for Emissions
David Wagman | October 16, 2018German law enforcement authorities hit Audi with fines totaling 800 million euros ($925 million) for selling cars rigged to cheat on emissions tests.
According to the Associated Press, prosecutors in Munich said on October 16 that the fine was imposed because Audi management neglected its oversight duties in selling cars with engines made by it and group partner Volkswagen that did not conform to legal limits on nitrogen oxide emissions. The case covered some 4.9 million Audi cars sold in Europe, the U.S. and elsewhere between 2004 and 2018.
Audi said it would not contest the fine. “Audi accepts the fine and, by doing so, admits its responsibility,” the company said in a statement.
(Read a statement by Audi accepting the fine and admitting responsibility for the violations.)
In September 2015, parent company Volkswagen admitted rigging some 11 million diesel vehicles worldwide with software that enabled them to pass U.S. emissions tests. Emissions that resulted during actual driving were higher.
(Read "VW Scandal: When Good Engineers Do the Wrong Thing.")
The news agency says that former Audi CEO Rupert Stadler is in jail while prosecutors investigate his possible involvement in the diesel scandal. Volkswagen has paid more than $30 billion in fines, settlements and recall costs since the scandal broke. Former CEO Martin Winterkorn and other executives face criminal charges in the U.S., although they cannot legally be extradited. Two Volkswagen executives were sent to prison in the U.S.
Prosecutors said the failure of proper corporate oversight by Audi AG enabled deliberate wrongdoing by individuals. It said 5 million euros of the fine was imposed for the oversight failure and 795 million represented Audi’s forfeiture of economic gains from the violation.