Audi agrees to pay $927m fine to settle emission case

German national flags fly from used Audi AG automobiles on the forecourt of the automaker's showroom in Berlin, Germany, on Tuesday, June 19, 2018. Volkswagen AG named Bram Schot as interim chief at its Audi unit, selecting the luxury brand's sales chief to replace longtime leader Rupert Stadler following his arrest Monday over his role in VWs diesel-emissions cheating. Photographer: Krisztian Bocsi/Bloomberg

German national flags fly from used Audi AG automobiles on the forecourt of the automaker's showroom in Berlin, Germany, on Tuesday, June 19, 2018. Volkswagen AG named Bram Schot as interim chief at its Audi unit, selecting the luxury brand's sales chief to replace longtime leader Rupert Stadler following his arrest Monday over his role in VWs diesel-emissions cheating. Photographer: Krisztian Bocsi/Bloomberg

Published Oct 16, 2018

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INTERNATIONAL - Volkswagen AG’s Audi unit will pay a fine of 800 million euros ($927 million) to settle an investigation by German prosecutors into the carmaker’s cheating on emissions regulation.

The penalty, which Audi accepted and won’t appeal, consists of 5 million euros for regulatory offenses, with the remainder a repayment of economic benefits as a result of the cheating, Audi said Tuesday in a statement. The investigation by Munich prosecutors targeted V6 and V8 diesel engines.

Volkswagen shares rose 3 percent at 11:11 a.m. in Frankfurt, even as both Audi and its parent said the fine would hurt their financial performance this year. The stock is down 11 percent this year.

The settlement concludes a long-running probe of Volkswagen’s deliberate cheating to circumvent diesel emissions regulation, uncovered in 2015. Since then, the carmaker has struggled to get past the scandal. Former Audi Chief Executive Officer Rupert Stadler has been in custody since June after allegedly tampering with a witness in the investigation.

The settlement covers about 5 million cars sold in Europe and the U.S. From 2004 to 2018. They consist V6 and V8 engines used in Audi, VW and Porsche brands as well as engine types EA 189 and 288 used in Audi models.

Probes against individuals, including former CEO Stadler, aren’t touched by the deal, Munich prosecutors said in an statement.

BLOOMBERG 

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