Authorities in Germany have imposed the highest fine ever on a company with slapping of a fine of €1bn (£880m) on Volkswagen over diesel emissions cheating.
In January of 2017, the German car maker had settled a suit in the U.S over the scandal after agreeing to cough up $4.3bn against the criminal and civil penalties that were likely to have been imposed against it for installation of software in diesel engines that enable the company to cheat on the strict US anti-pollution tests.
“Following thorough examination, Volkswagen AG accepted the fine and it will not lodge an appeal against it. Volkswagen AG, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step towards the latter being overcome,” the company said in a statement.
The official reason for the imposition of fines against the car maker as explained by the prosecutor’s office in Braunschweig, was for organisational deficiencies resulting in lack of supervision in the company that ultimately resulted in the company failing to stop “impermissible software functions” from being installed in 10.7m cars between 2007 and 2015.
The prosecutor’s office said in a statement that it had “ascertained a violation of supervisory duties” and added that civil claims or claims by vehicle owners were not included in the fine.
Regulatory offence proceedings against VW would however come to an end with the €1bn fine. The company said that it assumed that this development would enable the company to further settle further administrative proceedings that it was facing in other parts of Europe.
While the fine could enable VW to bring to an end all criminal investigations ongoing and pending against its in Europe, analysts at Evercore ISI however believe that it would not help in settling any of the shareholder lawsuits.
Evercore ISI said that the earnings of the car maker would be hurt because the fine amount was not incorporated into the €28.5 billion of provisions that the company has earmarked to as expenses for its diesel scandal.
A board meeting had bene held to debate the crisis and the members of the supervisory board had also been informed about the developments, VW said.
More s\measures were necessary to be taken by the company to come out of the scandal and reviver faith in the company, said Herbert Diess, the new chief executive officer of the company.
It was just a couple of days ago that prosecutors in Munich had decided to enhance the scope of an emissions cheating investigation into luxury carmaker Audi, a unit of VW, so it would also include the brand’s chief executive, Rupert Stadler, to be listed among the suspects who have been accused of fraud and false advertising.
(Source:www.theguardian.com)
In January of 2017, the German car maker had settled a suit in the U.S over the scandal after agreeing to cough up $4.3bn against the criminal and civil penalties that were likely to have been imposed against it for installation of software in diesel engines that enable the company to cheat on the strict US anti-pollution tests.
“Following thorough examination, Volkswagen AG accepted the fine and it will not lodge an appeal against it. Volkswagen AG, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step towards the latter being overcome,” the company said in a statement.
The official reason for the imposition of fines against the car maker as explained by the prosecutor’s office in Braunschweig, was for organisational deficiencies resulting in lack of supervision in the company that ultimately resulted in the company failing to stop “impermissible software functions” from being installed in 10.7m cars between 2007 and 2015.
The prosecutor’s office said in a statement that it had “ascertained a violation of supervisory duties” and added that civil claims or claims by vehicle owners were not included in the fine.
Regulatory offence proceedings against VW would however come to an end with the €1bn fine. The company said that it assumed that this development would enable the company to further settle further administrative proceedings that it was facing in other parts of Europe.
While the fine could enable VW to bring to an end all criminal investigations ongoing and pending against its in Europe, analysts at Evercore ISI however believe that it would not help in settling any of the shareholder lawsuits.
Evercore ISI said that the earnings of the car maker would be hurt because the fine amount was not incorporated into the €28.5 billion of provisions that the company has earmarked to as expenses for its diesel scandal.
A board meeting had bene held to debate the crisis and the members of the supervisory board had also been informed about the developments, VW said.
More s\measures were necessary to be taken by the company to come out of the scandal and reviver faith in the company, said Herbert Diess, the new chief executive officer of the company.
It was just a couple of days ago that prosecutors in Munich had decided to enhance the scope of an emissions cheating investigation into luxury carmaker Audi, a unit of VW, so it would also include the brand’s chief executive, Rupert Stadler, to be listed among the suspects who have been accused of fraud and false advertising.
(Source:www.theguardian.com)
