Volkswagen fined €1bn in Germany as emissions scandal rumbles on
Payout marks end of criminal investigations in Europe but carmaker still faces claims from motorists
Volkswagen has agreed to pay a €1bn (£880m) fine in Germany over its involvement in the 2015 emissions cheating scandal.
Public prosecutors in Brunswick concluded that the car giant “failed to properly oversee its engine development department” by supplying cars with “impermissible software functions”, Auto Express reports.
VW has admitted fitting around 11 million diesel vehicles with devices designed to circumvent emissions tests, the magazine reports.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
In a statement released yesterday, the company said that it “accepted the fine and will not lodge an appeal”. VW “admits its responsibility for the diesel crisis and considers this as a further major step towards the latter being overcome”, the statement continued.
Last year the German carmaker reached a deal with US presecutors to pay $4.3bn (£3.2m) “to resolve criminal and civil penalties” over the cheating devices, says Reuters.
VW set aside a total of €25.8bn (£22.6bn) to cover costs related to the emissions scandal.
When will the scandal end?
VW’s agreement with German prosecutors is a significant step in the seemingly never-ending emissions cases.
According to The Daily Telegraph, the deal is expected to mark the end of criminal investigations into VW in Europe.
However, the agreement will not reduce the “growing number” of claims against the company from motorists and shareholders, the newspaper adds.
There is also an ongoing legal case against the company’s former chief executive, Martin Winterkorn.
Winterkorn was indicated by US persecutors last month over claims that he was aware the company was employing emissions cheating devices “as early as 2014”, The Sunday Times says.
Meanwhile, VW revealed last week that it plans to temporarily shut down its main facility in Wolfsburg, Germany, to prepare for the new Worldwide Harmonised Light Vehicle Test Procedure (WLTP) emissions tests, which come into force on 1 September.
VW’s development chief, Frank Welsch, told Autocar that the company needs “more people” and “more time” to modify its cars in order to meet the stricter requirements.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Marty Makary: the medical contrarian who will lead the FDA
In the Spotlight What Johns Hopkins surgeon and commentator Marty Makary will bring to the FDA
By David Faris Published
-
4 tips for navigating holiday season stress
The Week Recommends Balancing pressure and enjoying the holidays can indeed coexist
By Theara Coleman, The Week US Published
-
Putin says Russia isn't weakened by Syria setback
Speed Read Russia had been one of the key backers of Syria's ousted Assad regime
By Peter Weber, The Week US Published
-
Volkswagen ID.5 review: what the car critics say
Feature The ID.4's 'sportier, more stylish twin' – but 'don't believe the hype'
By The Week Staff Published
-
VW ID Buzz review: what the car critics say
feature The new ID Buzz electric van is a modern successor to Volkswagen’s beloved Type 2
By The Week Staff Published
-
The pros and cons of hybrid cars
Pros and Cons Part-electric vehicles produce lower emissions but they may not work for every lifestyle
By Ellie Pink Published
-
VW Polo GTI review: what the car critics say
feature The new Polo GTI is refined, roomy and easy to drive
By The Week Staff Published
-
VW Multivan review: what the car critics say
feature Not much bigger than a normal car, it’s easy to park and a cinch to drive
By The Week Staff Published
-
Volkswagen Golf R Estate review: what the car critics say
feature Four-wheel drive is ‘impressively smooth’ but still flawed
By The Week Staff Published
-
Volkswagen Golf R Mk8 2021: spy shots, plus specs, price and UK release
In Depth Souped-up hatchback is spotted for the first time while testing in South Africa
By The Week Staff Published
-
Volkswagen ID.4 2021: first image, plus battery range, release and price
The Week Recommends German car giant’s second mass-production EV set to take on Tesla Model Y
By The Week Staff Published