After Firing Its Boss, Audi Prepares to Pay the Piper
The scandal has raged for over three years, and Audi clearly wants to be done with it. The company said in a regulatory filing Tuesday that, like Volkswagen, it will not fight a fine handed down by German prosecutors over the selling of rigged diesel engines in that country.
Earlier this month, Audi said auf wiedersehen to jailed CEO Rupert Stadler, who’s accused of fraud in relation to the diesel emissions affair. Now, the automaker will hand over a towering pile of euros to finally close this messy chapter in its history.
According to the filing, Audi faces a fine of 800 million euros, or roughly $925 million, for selling six- and eight-cylinder diesel vehicles equipped with emissions-cheating “defeat devices.” Sister division Volkswagen, which sold a larger number of rigged four-cylinder vehicles, agreed to pay a 1 billion euro fine in June, settling its part in the scandal.
By not appealing the fine, Audi admits responsibility in the diesel deception. The automaker warned that its financials will take a hit.
“Considering these special items the Audi Group will significantly undercut major financial key performance indicators forecasted for the fiscal year 2018,” the company said in its filing.
For parent Volkswagen Group, the scandal’s echoes continue. Investigations remain ongoing, with prosecutors targeting former VW CEOs Martin Winterkorn and Matthias Müller. Meanwhile, a massive investor lawsuit, currently ongoing, aims to extract $10.7 billion from the company.