Volkswagen AG’s Audi unit agreed to pay an 800 million-euro ($926 million) fine for its role in the diesel-cheating scandal that has disrupted the car industry for more than three years and landed Audi’s longtime leader in jail.
The penalty consists of the maximum fine of 5 million euros and the seizure of 795 million euros in profits the company made selling rigged engines, Munich prosecutors said in a statement. As part of the deal, Audi admitted that it had deviated from regulatory requirements.
The settlement is closing a new chapter in the long-standing investigation of Volkswagen’s steps to overcome diesel emissions regulations in 2015. In June, Volkswagen accepted a similar agreement with the Braunschweig prosecutors, who agreed to pay 1 billion euros. The settlement does not have any impact on individual managers on civilian cases against subcontractors or on three auditors.
Ever We see the money in Audi as manageable and progressively positive as it lifts one leg of VW’s old uncertainty ”, Evercore ISI analyst Arndt Ellinghorst wrote a note to its customers, who evaluated their stock better.
Volkswagen shares rose by 3 percent at 11:42 in Frankfurt, while both Audi and parents said the fine would hurt their financial performance this year. The stock fell 11 percent this year.
Stadler in custody
Former Audi CEO Rupert Stadler has been in custody since June for alleged witness to the Munich investigation. The Braunschweig prosecutors are also weighing out the fees of VW managers involved in the scandal.
The seizure of profits from the agreement on Tuesday included sales in 2004 and 2018, as well as sales in Europe and the US, as well as the savings made by failing to equip the car with appropriate technology according to the prosecutor’s office. The location includes the V6 and V8 engines used by Audi, VW and Porsche and the other two Volkswagen engines.
Ve After a thorough review, Audi has accepted the sentence and will not appeal, “he said. ”Audi AG accepts responsibility for deviations from legal requirements.“
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