July 24, 2021

Audi agrees to pay 800 million euros for the «dieselgate»

Audi agrees to pay 800 million euros for the «dieselgate»


Audi has arrived with the prosecutors of Munich to an agreement according to which it agrees to pay the German State 800 million euros and accepts its responsibility in the case of tricked-out diesel engines. After the payment of this amount there will be no resources and the judicial procedure of the scandal will be considered finished as far as Audi is concerned. Given that the German law, which was not prepared for a scandal of such dimensions, allows only a maximum fine of 5 million euros, the agreement adds to that amount the remaining 795 million in concept of economic benefits. In a statement issued by Volkswagen, it is reported that "Audi accepts the fine after an exhaustive analysis and will not lodge an appeal", adding that "Audi recognizes its responsibility in the breach of its supervision obligations".

Audi accepts the crime of "deviation from regulatory requirements" in some of its V6 and V8 diesel engines and its managers calculate that, as a subsidiary of Volkswagen and included in its financial statement, this decision will have consequences on the results, reducing profits of the 2018 fiscal year. The results of the corporation have already been negatively affected by 1,600 million euros derived from "legal risks" recorded by the "dieselgate" and at the beginning of October the monitoring councils of the Volkswagen group and Audi already They gave their consent to to close an agreement with Rupert Stadler, president of Audi, which put an end to his responsibilities in the company. The acknowledged reason for this decision was that Stadler, being on remand, could not continue to fulfill his obligations.

After taking these measures, Audi hopes to put an end to the scandal on their part and continue their business. «For a luxury products company it is especially burdensome you are present in the media for cases in the courts and in relation to a scandal like this, so accepting the payment and discharging internal responsibilities as soon as possible has been the most convenient », Explain sources of the sector. The need to disassociate himself from the scandal and give way to the era after him has even led to Audi to think about renewing your logo. Recent requests of the German brand in different patent and trademark offices suggest that at least it is studying new possibilities and designs for its famous emblem.

In March of last year, the Munich Prosecutor's Office announced that it was investigating Audi for fraud and illegal advertising in the sale in the US between 2009 and 2015 of around 80,000 vehicles. As he explained then, the suspicion was that devices had been installed to manipulate the values ​​of the emissions in order to comply with the limits set in the United States, without informing the buyers. Subsequently, the Federal Office of Motor Vehicles (KBA), under the German Ministry of Transport, ordered Audi to call workshops and repair more than 127,000 diesel vehicles handled. The Office of the Prosecutor also informed that there were fourteen people accused in the framework of the ongoing investigation into the fraud in diesel vehicles sold in the United States, none of them among current or former members of the Audi management. In the open trials, the alleged crimes of fraud and illegal advertising were investigated in the sale in Europe and the United States of at least 201,000 diesel vehicles since 2009. In this context, a procedure for the imposition of economic sanctions against members of the Audi management not yet identified and against the company itself, for its possible cooperation or participation in the facts, had also been opened.

Finally, the Prosecutor's Office determined that Audi breached its supervision obligations in the department that verifies the regulatory compliance of its vehicles and that as a consequence between 2004 and 2018, certain V6 and V8 type diesel engines developed by the company did not meet the established standards. In this way, Audi was also unable to detect that the diesel engines of type EA288 (Gen3) in the United States and Canada and the type EA 189 worldwide developed by Volkswagen were equipped with illegal software.

As part of the strategy for the complete renovation of the Audi model range, the firm has shown among the innovations for 2019 electric cars and several S and RS versions of some new models, as well as a range with micro hybridization systems.


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