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​Volkswagen accepts 1 billion euro fine to terminate proceeding in Germany

Xinhua Financein FRANKFURT
2018-06-14 08:58

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German auto manufacturer Volkswagen AG announced Wednesday to accept 1 billion euro (1.18 billion U.S. dollars)fine issued by local public prosecutor in the context of the diesel gate scandal, to terminate proceeding in Germany.

The Braunschweig public prosecutor issued Wednesday an administrative order against Volkswagen, which provides for a fine of 1 billion euro in total, consisting of the maximum penalty as legally provided for of 5 million euros and the disgorgement of economic benefits in the amount of 995 million euros.

In the period from mid-2007 until 2015, 10.7 million Volkswagen vehicles in total with the diesel engines of the types EA 288, in the United States and in Canada, and EA 189, worldwide, were placed on the market with an impermissible software function, according to the results obtained by the prosecutor.

"Volkswagen AG accepted the fine and it will not lodge an appeal against it," told a statement released by the auto giant.

By doing so, Volkswagen admitted its responsibility for the diesel crisis, considering this as a further major step towards the further overcome of the crisis.

As a result of the administrative order imposing the fine, the active regulatory offence proceedings conducted against Volkswagen will be finally terminated.

Volkswagen assumes that such termination of the proceedings will also have significant positive effects on further active administrative proceedings against Volkswagen deeply involved in diesel gate in Europe. (1 euro = 1.18 U.S. dollars)
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