N The board of the Volkswagen Group usually meets on Tuesdays. When he met again on Wednesday for an unscheduled meeting, it was already apparent to initiates that there had to be a significant issue. How significant – this was soon after the stock market closed, when the company announced in a mandatory statement to the financial markets to accept a fine of one billion euros in an administrative offense because of the exhaust gas scandal.
The competent prosecutor of Braunschweig had issued the decision on one of the highest fines ever imposed on a company in Germany. Their investigations, which began in October 2015, revealed that the VW engine division had been in breach of duty for years, such as Volkswagen announced. As a result, between the years 2007 and 2015, Volkswagen advertised, sold and marketed to Volkswagen around the world 10.7 million diesel cars with inadmissible software functions.
Obviously, the prosecution has classified the breach of duty of the company but only as a negligent offense. This results from the composition of the fine under the Administrative Offenses Act. It consists of a fine of 5 million euros, 995 million euros Volkswagen has to pay because it has gained economic benefits from the misconduct.
VW hopes for positive effects for other procedures
For the Volkswagen chairman Herbert Diess shows the agreement that VW Making progress on the diesel fraud that became known in September 2015. “We are working hard to come to terms with our past,” Diess quoted. VW assumes that the decision to fine in Braunschweig “also have significant positive effects” on more in Europe against Volkswagen AG and its affiliates conducted proceedings. According to the prosecutor, the money must be paid within six weeks to the state of Lower Saxony.
With the decision of Wednesday, the Group has closed only part of the legal risks related to the diesel scandal. In Braunschweig, another procedure is being pursued in which investors demand compensation for price losses of their Volkswagen AG shares. Investors of the owner company Porsche SE, which holds a good 52 percent of the VW ordinary shares, claim the same thing at Stuttgart Regional Court.
In addition, criminal investigations are under way, including against employees of Audi and Porsche. In addition, there are numerous lawsuits by car owners who want to return their vehicles. Overall, the diesel scandal will cost the group according to the current state of more than 25 billion euros. This sum includes fines and damages for concerned motorists in the United States. There, the diesel scandal in 2015 had its starting point.