Report AUDI FINED $1.3 BILLION IN GERMANY

[MTL2025]

AUDI FINED $1.3 BILLION IN GERMANY OVER DIESELGATE ENGINES

Company admits guilt, and will not contest the fine


Audi has been fined €800 million ($1.3 billion) for regulatory breaches in relation the V6 and V8 turbo-diesel engines engulfed in the Dieselgate emissions scandal.

The fine was handed down via an administrative order from the Munich public prosecutors office. In a statement, Audi says it "accepts the fine, and, by doing so, admits its responsibility".

Audi says the V6 and V8 diesel engines in question did meet regulatory requirements, and it also "failed to discover" diesel engines supplied to it from Volkswagen between 2004 and 2018 had an "impermissible software function".

Both the Audi- and Volkswagen-developed engines were engineered to limit emissions during laboratory testing, but work in a normal non-compliant state when being driven on the road.

The €800 million punishment comes in two parts: the maximum €5 million ($8 million) fine for breaching regulations, and €795 million ($1.29 billion) fine for profiting from that breach.

This latest admission of guilt closes off the Dieselgate regulatory proceedings against Audi in Germany, but there are still criminal and civil cases pending against the luxury carmaker and its parent company.


At the beginning of this month, Rupert Stadler, CEO of Audi between 2010 and 2018, officially parted company with the automaker. He is currently being held in detention as prosecutors fear he will tamper with their investigation.

Earlier this year Volkswagen was fined €1 billion ($1.6 billion) for regulatory breaches relating to the EA288 Gen3 diesel engine sold in the USA and Canada, and the EA189 diesel motor sold throughout the world.

SOURCE:Audi fined $1.3 billion in Germany over Dieselgate engines | CarAdvice

 

[CrunchSlaughtered]

800 mln EUR is not 1,3 bln USD

 

[Dauer]

800 mln EUR is not 1,3 bln USD

Australian dollars

 

[DblPen]

I wonder what does it mean for the company, do they just pay from some emergency account and keeps it going, or will they actually start to save money/stop funding for not-so-relevant models

 

[TheNewBATMAN]

I wonder what does it mean for the company, do they just pay from some emergency account and keeps it going, or will they actually start to save money/stop funding for not-so-relevant models

Neither man, so that's why they they billed me 801 million Euros for 'Owner's secret cave construction in Greenland', those bastards

They knew I never have time to visit all my caves

 

[Matski]

I wonder what does it mean for the company, do they just pay from some emergency account and keeps it going, or will they actually start to save money/stop funding for not-so-relevant models

It may be they have insurance against it. Or they simply borrow the lump sum and add the repayments to their liabilities... don't know, these are just guesses.

 

[klier]

Australian dollars

LMAO, the title is in Australian Dollar? WTF? Why don't we do it in Vietnamese noodles?

 

[Mars1965]

The German taxpayer pays half of it.

 

[klier]

The German taxpayer pays half of it.

Because the German taxpayer let it all happen like sheeple

Too bad for them.

 

[Ultimate Car Guy]

I wonder what does it mean for the company, do they just pay from some emergency account and keeps it going, or will they actually start to save money/stop funding for not-so-relevant models

Provisions were made in 2015 and 2016 to cover these fines i.e. money was set aside to specifically pay for the fines when/as they are imposed.

This would obviously have an impact on the R&D budget but the severity would've been offset by efficiency measures combined with the cancellation and postponement of non-essential vanity projects. Audi's PR66 and PR67 contains various overlays and contingencies to cater for this outcome.

 

[klier]

Provisions were made in 2015 and 2016 to cover these fines i.e. money was set aside to specifically pay for the fines when/as they are imposed.

This would obviously have an impact on the R&D budget but the severity would've been offset by efficiency measures combined with the cancellation and postponement of non-essential vanity projects. Audi'...

The people who made the cheap touch screen galore in the new Audis almost were like prophets. They knew costs were going to get cut in the future because of VAG's scandalous behavior, so they made the new interiors cheap. Well done guys, thinking ahead.

Everything falls in place in hindsight.

 

[Ultimate Car Guy]

The people who made the cheap touch screen galore in the new Audis almost were like prophets. They knew costs were going to get cut in the future because of VAG's scandalous behavior, so they made the new interiors cheap. Well done guys, thinking ahead.

Everything falls in place in hindsight.

If only the business was that simple...

The industry has 4-5 year lag time so the perceived quality that you see in the current generation of Audi's were a result of decisions made in 2012-2013.

The real impact of Dieselgate will only begin to manifest itself from 2019/2020 onwards.

Within the Group, Audi is seen as the subsidiary that's caught-up in what many would deem to be the perfect storm - a company plagued with lacklustre products, management bereft of stable leadership, and finances encumbered by significant fines and penalties.

 

[klier]

If only the business was that simple...

That's why I said they were prophets. They looked into the future. I am obviously well aware that the current Audi A6 had it's design set in stone looooong before dieselgate. Poor Rupert was still in his 200 million Vietnamese Noodle mansion, and not in prison....