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Volkswagen to pay $1.2 billion over diesel emissions scandal

The autogiant in 2015 had admitted to fitting 11 million vehicles worldwide with "defeat devices", a software designed to trick regulators into thinking that the cars met the emissions standards.

Edited by: India TV News Desk, Berlin [ Published on: June 14, 2018 18:10 IST ]
The company said that it had accepted the fine and would

The company said that it had accepted the fine and would not lodge an appeal.

German auto giant Volkswagen on Wednesday said that it would pay a $1.2 billion fine imposed by German prosecutors for diesel emissions cheating.

The company said that it had accepted the fine and would not lodge an appeal.

"Volkswagen AG, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step towards the latter being overcome", said the company in a statement.

The penalty was one of the highest fines ever imposed on a company in Germany. 

The auto giant in 2015 had admitted to fitting 11 million vehicles worldwide with "defeat devices", a software designed to trick regulators into thinking that the cars met the emissions standards.

In reality, the output of the harmful fine particulates and nitrogen oxides, which can cause respiratory and heart diseases was far higher than the permissible standards.

Volkswagen's admission had so far cost the company more than 25 billion euros in buybacks, fines and compensation and the company remains mired in legal troubles, both home and abroad.

The company's chief executive at the time of the diesel scandal Martin Winterkorn stepped down soon after the news broke, while successor Matthias Mueller was hastily replaced earlier this year.

Both are suspected of knowing earlier than they have so far admitted about the cheating, meaning they failed in their duty to inform investors in the car giant about the financial risks.

US prosecutors also indicted Winterkorn last month saying he knew of the company's emissions cheating as early as May 2014 but decided to continue.

The scandal has cast a pall over Germany's vaunted car industry, with suspicions of emissions manipulation since spreading to other companies.

Luxury carmaker BMW and Mercedes-owned Daimler have both had their offices raided by investigators searching for evidence of possible cheating.

In the spiralling scandal, Germany ordered Monday the recall of some 774,000 Daimler vehicles across Europe, citing illegal defeat devices.

 

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