Volkswagen unit Porsche to pay €535m fine over diesel cheating
Prosecutors say development department neglected its legal obligations
PHOTO: REUTERS
FRANKFURT/BERLIN:
German prosecutors imposed a €535 million ($598 million) fine on German luxury carmaker Porsche AG, a unit of Volkswagen, as punishment for lapses in supervisory duties which allowed the company to cheat diesel emissions tests.
Prosecutors in the southern city of Stuttgart on Tuesday said that the company’s development department had neglected its legal obligations, which ultimately led to the sale of diesel cars that spewed excessive pollution levels.
The fine against Porsche follows a €1 billion penalty for management lapses imposed against Volkswagen (VW) by prosecutors in Braunschweig, and a fine of €800 million against Audi by prosecutors in Munich last year.
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US authorities disclosed Volkswagen’s systematic emissions cheating on September 18, 2015, sparking the biggest business scandal in the company’s history which has cost Volkswagen Group €30 billion in penalties and fines. VW, Porsche and Audi all sold diesel engine cars which failed to conform to clean air rules and cheated emissions tests.
German prosecutors have pursued individual engineers and took action against the companies for lack of oversight because managers failed to prevent heavily polluting cars from hitting European roads. Prosecutors said Porsche had not appealed the findings by the prosecutor.
Porsche confirmed the fine and said that prosecutors’ proceedings against the company had come to an end.
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The fine does not hinder ongoing proceedings against individual people in relation to Porsche’s diesel manipulations, the prosecutors added.
Earlier in November 2018, German consumer groups filed the country’s first class-action suit over Volkswagen’s emissions cheating scandal.
They accused the sprawling 12-brand group of deliberately harming clients by installing software to make cars appear less polluting than they really were.
Published in The Express Tribune, May 8th, 2019.
German prosecutors imposed a €535 million ($598 million) fine on German luxury carmaker Porsche AG, a unit of Volkswagen, as punishment for lapses in supervisory duties which allowed the company to cheat diesel emissions tests.
Prosecutors in the southern city of Stuttgart on Tuesday said that the company’s development department had neglected its legal obligations, which ultimately led to the sale of diesel cars that spewed excessive pollution levels.
The fine against Porsche follows a €1 billion penalty for management lapses imposed against Volkswagen (VW) by prosecutors in Braunschweig, and a fine of €800 million against Audi by prosecutors in Munich last year.
Volkswagen teams up with China's NIU to make e-scooters
US authorities disclosed Volkswagen’s systematic emissions cheating on September 18, 2015, sparking the biggest business scandal in the company’s history which has cost Volkswagen Group €30 billion in penalties and fines. VW, Porsche and Audi all sold diesel engine cars which failed to conform to clean air rules and cheated emissions tests.
German prosecutors have pursued individual engineers and took action against the companies for lack of oversight because managers failed to prevent heavily polluting cars from hitting European roads. Prosecutors said Porsche had not appealed the findings by the prosecutor.
Porsche confirmed the fine and said that prosecutors’ proceedings against the company had come to an end.
Volkswagen group plans to build 10 million e-cars in first wave
The fine does not hinder ongoing proceedings against individual people in relation to Porsche’s diesel manipulations, the prosecutors added.
Earlier in November 2018, German consumer groups filed the country’s first class-action suit over Volkswagen’s emissions cheating scandal.
They accused the sprawling 12-brand group of deliberately harming clients by installing software to make cars appear less polluting than they really were.
Published in The Express Tribune, May 8th, 2019.