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German Automaker Audi Fined $927 Million for Diesel Emission Violations

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【Summary】German premium car brand Audi, a division of Volkswagen, said it was fined 800 million euros ($927 million) on Tuesday for emission violations tied to its six and eight-cylinder diesel engines. The massive fine is expected to cut into the company’s profits for 2018.

FutureCar Staff    Oct 16, 2018 6:32 PM PT
German Automaker Audi Fined $927 Million for Diesel Emission Violations

The Volkswagen dieselgate scandal of 2015 uncovered massive fraud by the company to cheat stringent diesel emissions tests on vehicles sold in both Germany and the U.S. The scandal has also affected VW's luxury division Audi.

German premium car brand Audi, a division of Volkswagen, said it was fined 800 million euros ($927 million) on Tuesday for emission violations tied to its six and eight-cylinder diesel engines.

"Considering these special items the Audi Group will significantly undercut major financial key performance indicators forecasted for the fiscal year 2018," Audi said in a regulatory statement.

Audi's parent Volkswagen warned its earnings would also be affected.

Audi accepts the fine and will not lodge an appeal against it, the company said. By doing so, it said it admits its responsibility for the deviations from regulatory requirements.

Earlier this month, Volkswagen terminated the contract of Audi Chief Executive Rupert Stadler, who is under investigation for suspected involvement in emissions cheating. Sales executive Bram Schot was appointed as interim CEO and has expressed interest in staying on at the helm of the automaker.

The Volkswagen Group was hit with a similar 1 billion euro fine in June when prosecutors in Braunschweig also used a so-called administrative order to punish VW for oversight problems which allowed millions of polluting cars to hit the road.

VW was fined for developing and selling polluting four cylinder engines, while prosecutors in Munich at the time said they were examining whether to impose similar fines on Audi.

VW admitted to tampering with the diesel engine vehicle software in order to pass stringent emission tests in the U.S. The vehicles were found to emit up to 40 times the allowable limits harmful nitrogen emissions on the road. The scandal affected more than 11 million vehicles, leading to one of the largest recalls in automotive history.

The scandal led to the arrest of Audi CEO Rupert Stadler in June 2018.

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