Audi to pay €800m fine in diesel emissions scandal

Audi has agreed to pay an €800m fine, closing a probe into Volkswagen’s diesel emissions scandal that has already cost the company around €27bn.

Parent company Volkswagen admitted in 2015 to having rigged about 11m heavily polluting cars with six- and eight-cylinder diesel engines with software to avoid emissions testing rules. In June 2018, Volkswagen agreed to a €1bn settlement with German prosecutors over the scandal.

Audi has been sanctioned for failing to detect the “defeat device” software installed in its own vehicles and allowing them to go on sale.

Volkswagen said the Audi fine won't affect the group's 2018 earnings guidance and its shares traded higher after the announcement, with investors seeming more relaxed after finally having a concrete figure for the fine.

Volkswagen is still to face a lawsuit from German shareholders who suffered losses after the scandal came out. If investors win the lawsuit, VW could face up to €9.2bnin damages.

Also there are other cases against VW executives that remain open with charges including fraud, false advertising and failure to keep investors informed.