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Audi fined 800 million euros in dieselgate scandal

Staff Writer | October 17, 2018
Audi was handed an 800-million-euro (927.8 million U.S. dollars) regulatory fine by the Munich State Prosecution Office in the course of "dieselgate" investigations, Volkswagen AG, the mother corporation of the luxury carmaker, announced on Tuesday.
Europe   Audi AG has accepted the fine and hence accepts its responsibility
"Audi AG has accepted the fine and hence accepts its responsibility", a statement by Volkswagen read.

The official reasoning for the fine was provided with Audi's "divergence from regulatory requirements" in its production of certain diesel motors.

The exact sum was arrived at from the combination of a punitive penalty of five million euros, the highest which can be awarded under German law in such cases, and an estimated 795 million euros in additional earnings which the Ingolstadt-based company had derived from the illicit behavior in question.

Volkswagen predicted that the development would have an immediate effect on its own financial performance and that of its subsidiary in 2018. "Taking special one-off effects from the fine order into account, the Audi corporation will underperform key financial targets from its forecast for the 2018 fiscal year significantly", Volkswagen wrote.

Porsche SE, the holding company of the Porsche-Piech family which owns the majority of publicly-listed Volkswagen Group shares, also expects net profits for this year to fall by around 900 euros to between 2,5 and 3.5 billion euros as a consequence.