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.
[Source: Reuters]
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Bummer as it will add a few more dollars to their price taking them even farther out of my price range. I should of kept my old A3.
If not for the fines and buybacks, the VW group dieselgate scandal wouldn't have cost the company a nickle because it seems that their sales have been unaffected in all major markets. Just shows the true importance of emissions to the car buying public.
I remember being very excited about acquiring a new Audi SUV Q5 several years back. Shortly after acquiring the SUV I smelled oil and observed an unusual oil consumption. I knew I had a leaker. Also, the entertainment function did't always work. Oh yes, then I had Takata airbags. Audi replaced then with newer Takata airbags that were less likely to explode because, as Audi explained, they were newer. Diesel emissions is the least of Audi's problems. Oh yes, please let me have another Audi. Screw Audi and the horsepower it rode in on. P.S. Nothing beats the niche market X4 Beemer SAVI have now. Nothing.