Audi shares are higher Tuesday, despite news from the luxury German carmaker that it has been fined by the German prosecutor for diesel emissions violations. Parent company Volkswagen AG, warned that its balance sheet would also be affected by the fine.
By 1155 BST, Audi shares were 2.22% higher at €736.00, after being little changed in recent weeks. Volkswagen shares, meanwhile, were 2.41% in the green at €147.90. The stock has been moving lower in recent trading activity.
Audi accepts fine
Audi said earlier Tuesday, that it had been fined €800 million by the German prosecutor for diesel emissions violations. This is the maximum fine available for the offences.
The fine relates to deviations from the rules on diesel emissions, relating to certain V6 and V8 diesel engine powered cars, manufactured by the car maker.
The Munich II public prosecutor found that “monitoring duties had been breached in the “emissions service / power engine approval” organizational unit in the context of the monitoring of vehicles regarding their regulatory conformity”, Audi said.
The ruling also stated that certain engines sold in the US and globally, which also didn’t meet the diesel emissions requirement were sold due to Audi’s failure of its monitoring duties.
“Following thorough examination, AUDI AG accepted the fine and it will not lodge an appeal against it. By doing so, Audi AG admits its responsibility for the deviations from regulatory requirements,” the car maker said.
Audi fine to hit VW finances
Audi’s former CEO, Rupert Stadler’s contract was terminated by parent company Volkswagen, earlier in October, due to his suspected involvement in emissions cheating at the firm. Stadler remains under investigation.
As a result of the fine, Audi said that it would now “significantly undercut major financial key performance indicators forecasted for the fiscal year 2018.”
Parent company Volkswagen also said that this fine would affect its earnings finances.
“As AUDI AG is a fully consolidated subsidiary of Volkswagen AG and, therefore, is included in the group financial statement of Volkswagen AG, the fine will directly will directly affect Volkswagen AG’s financial earnings and, as a negative special item, reduce the group earnings for fiscal year 2018 accordingly,” Volkswagen said in an Ad Hoc press release.