Audi Fined $925 Million For Emissions Cheating

German prosecutors say Audi's corporate officers took a nap for more than 10 years.

Audi Fined $925 Million For Emissions Cheating

Posted in News

— When Porsche announced it would no longer use diesel engines in its vehicles, executives said they had suffered enough from using Audi diesel engines equipped with illegal emissions software.

Proof of the nightmare caused by Porsche being hitched to Audi and Volkswagen is seen in the more than $30 billion VW has paid in penalties, lawsuit settlements and government actions.

Now Germany has added another $925 million to the bill by fining Audi because management bailed out on their responsibilities between 2004 and 2018. German prosecutors say Audi sold nearly 5 million illegal diesel vehicles that emitted harmful levels of nitrogen oxides during that time period.

Prosecutors say the vast majority of the fine is to recover profit Audi made from selling the illegal vehicles, and for the edge the automaker had over other manufacturers by cheating emissions regulations.

Specific employees and executives won't be affected by the $925 million agreement as federal investigations are ongoing against those individuals, including former Audi CEO Rupert Stadler who sits in jail while German prosecutors build their case.

Audi says it admits its failures and will accept the fine without conditions as a way to show its home country the automaker isn't trying to run from its responsibilities.

Volkswagen, as well as other automakers, are having a rough time as certain German cities ban older diesel models from the roads and regulators create strict emissions laws every diesel model must meet.

According to VW, owners in 14 cities will be eligible for incentives to unload their older diesel vehicles in exchange for vehicles that won't be banned. The automaker says amounts between $1,700 and $9,200 will apply toward the purchase of a new vehicle and lesser amounts will apply toward the purchase of used vehicles.

Volkswagen is also offering increased trade-in values to diesel owners in the cities most affected by air pollution.

VW and other manufacturers are also facing the threats caused by the move away from combustion engines and toward electric vehicles. European regulators say they want emissions levels cut by a third by 2030, a wake-up call to VW and other companies that are already having problems meeting current emissions standards.