Volkswagen says will pay 1 bn euro German fine over emissions cheating

VW hit with $1.2B fine in Germany for emissions cheat

Volkswagen says will pay 1 bn euro German fine over emissions cheating

Germany has fined Volkswagen €1 billion over the auto maker's diesel emissions cheating scandal, public prosecutors have announced.

The German fine follows a us plea agreement from January 2017 when VW agreed to pay $4.3 billion to resolve criminal and civil penalties for installing illegal software in diesel engines to cheat strict USA anti-pollution tests. The fine is among the largest imposed on a company in Germany's history, according to the prosecutor in the case, and it shows that the German automaker is still dealing with the fallout from a persistent pattern of lying to regulators.

In response to the fine, Volkswagen has confirmed it will not launch an appeal but says it now considers all further proceedings against it in Europe will be settled.

The firm said it hoped that paying the fine would have "positive effects on other official proceedings being conducted in Europe against Volkswagen" and its subsidiaries.

The fine is the latest blow to Germany's auto industry which can not seem to catch a break from the diesel emissions crisis.

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VW said it held a board meeting to discuss the crisis, with members of the supervisory board also being informed.

Volkswagen's new Chief Executive Herbert Diess said further steps were needed by the company to overcome its diesel cheating scandal and to restore trust in the company.

"The Braunschweig public prosecutor issues an administrative order against Volkswagen AG in the context of the diesel crisis and imposes a fine of EUR1 billion on Volkswagen AG", the company said in a statement.

The one billion euro fine was not accounted for in Volkswagen's 25.8 billion euro provision for Dieselgate-related fines, payouts, fixes and penalties, and would impact upon the Wolfsburg carmaker's earnings, analysts at Evercore ISI said.

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