VW Slapped With Billion Euro Dieselgate Fine
Volkswagen will have to pay one of the biggest ever fines imposed by German authorities against a company. The one billion euro fine is the latest punishment the company faces for its 2015 Dieselgate scandal.
“Following thorough examination, Volkswagen AG accepted the fine and it will not lodge an appeal against it,” said VW in a statement. “Volkswagen AG, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step toward the latter being overcome.”
Volkswagen will update investors on the implications of the fine on August 1, when it releases the result of its second quarter, according to Frank Witter, the automaker’s finance chief.
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While the fine is undoubtedly serious, VW’s recent performance and scale mean that “in the broader context it isn’t a material number,” Arndt Ellinghorst, Evercore ISI analyst, told Reuters. That’s because the company came out of the first quarter of 2018 with a 24.3 billion euro net cash position in Europe.
The fine is the latest result of VW’s diesel woes and ends regulatory offense proceedings against it. That’s good news for VW, but this is by no means the end of the road for Dieselgate. According to the prosecutor’s office, the fine doesn’t address any civil claims or claims by vehicle owners.
[Source: Reuters]
A version of this story originally appeared on VW Vortex.
Sebastien is a roving reporter who covers Euros, domestics, and all things enthusiast. He has been writing about the automotive industry for four years and obsessed with it his whole life. He studied English at the Wilfrid Laurier University. Sebastien also edits for AutoGuide's sister sites VW Vortex, Fourtitude, Swedespeed, GM Inside News, All Ford Mustangs, and more.
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