Germany slaps Audi with 800M euro fine for diesel misdeeds
That's sure to make a dent in the automaker's annual financial report.
Sometimes, it's best to just take your slap on the wrist and promise not to mess up again. That's what Audi plans to do with regards to the massive fine it just received from German prosecutors.
Munich has hit Audi with an 800 million euro (about $926 million) fine, the automaker said in an announcement today. The fine is related to its six- and eight-cylinder diesel engines, which violated emission regulation standards in the country. These vehicles were equipped with illegal software that curtailed the vehicles' emissions during testing, but when the vehicles hit the road, they polluted more than legally permitted.
Audi said in a statement that it will not appeal the fine. "By [not appealing], Audi AG admits its responsibility for the deviations from regulatory requirements," the automaker said in a statement. Audi also recognizes that this will affect its bottom line, saying in the same statement that "these special items ... will significantly undercut major financial key performance indicators forecasted for the fiscal year 2018."
Earlier in October, Audi terminated the contract of now-former CEO Rupert Stadler, who was arrested in June for his role in Volkswagen 's diesel scandal and its subsequent cover-up. Sales executive Bram Schot is currently Audi's acting CEO, but an official replacement should be announced in the near future. Stadler's arrest was allegedly a move to prevent any interference as the German government continues its Dieselgate investigation.
Audi's parent company, Volkswagen, has also been busy forking over dough for its diesel malfeasance. As of September 2017, Volkswagen spent $30 billion in the US alone, split between a mix of vehicle fixes, buybacks and environmental remediation efforts. It also created Electrify America, a brand-agnostic subsidiary dedicated to help push consumers toward electric vehicles of all makes.
