Volkswagen Fined 1 Billion Euros For Diesel Emission Scandal

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Prosecutors in Germany have imposed a $1.2 billion fine on Volkswagen over the company's diesel scandal.

The fine follows a U.S. plea agreement from January 2017 when VW agreed to pay $4.3bn to resolve criminal and civil penalties for installing illegal software in diesel engines to cheat strict USA anti-pollution tests.

"As a result of the administrative order imposing the fine, the active regulatory offence proceedings conducted against Volkswagen will be finally terminated", the company said.

Volkswagen's diesel emission scandal started back in September 2015, and it's still ongoing today.

VW said that it accepted the fine, and would not appeal.

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Munich prosecutors this week widened an emissions cheating probe into VW's luxury brand Audi to include Chief Executive Rupert Stadler among the suspects accused of fraud and false advertising. Earlier this week, the German government ordered Daimler to recall 240,000 cars in Germany due to illegal emissions-control devices.

This had led to 10.7 million cars "being advertised, sold to customers and placed on the market with an impermissible software function" in the US, Canada and worldwide between mid-2007 and 2015, the company said.

Analysts at Evercore ISI said this fine would likely help end all criminal investigations against VW in Europe, but would not settle shareholder lawsuits.

The German vehicle maker announced the fine on Wednesday evening, saying it had agreed the "administrative penalty" after an investigation by the public prosecutor in Braunschweig, the city close to the company's Wolfsburg headquarters.

Volkswagen said it held a board meeting to discuss the crisis with members of the supervisory board also being informed. "Further steps are necessary to gradually restore trust again in the company and the auto industry".