Canadian prosecutors seek to fine Volkswagen C$196.5 million for diesel emissions

FILE PHOTO: A Volkswagen logo is seen at a construction completion event of SAIC Volkswagen MEB electric vehicle plant in Shanghai, China November 8, 2019. REUTERS/Aly Song/File Photo

(Reuters) – Prosecutors in Canada on Wednesday proposed a $196.5 million (CAD) ($149.5 million) fine against Volkswagen AG (VOWG_p.DE) after the company pleaded guilty to dozens of counts of diesel emissions violations, a company spokesman confirmed on Wednesday.

Volkswagen was charged in December with importing nearly 128,000 vehicles into Canada violating emissions standards. VW pleaded guilty after being charged with 60 counts of breaching the Canadian Environmental Protection Act and providing misleading information. The company said last month it had reached “a proposed plea resolution” without disclosing details.

Volkswagen admitted to using illegal software to cheat U.S. pollution tests in 2015, triggering a global backlash against diesel vehicles that has so far cost it 30 billion euros ($33.3 billion) in fines, penalties and buyback costs. In May 2019, it set aside an additional 5.5 billion euros in contingent liabilities as it continues to face penalties and lawsuits around the world.

Last week, Poland’s consumer watchdog UOKiK said it was fining Volkswagen more than 120 million zlotys ($31.4 million) for misleading customers about the emissions of its vehicles.

Reporting by David Shepardson; Editing by Sandra Maler and David Gregorio

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