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Volkswagen slapped with 1 billion euro fine by German government

14 June 2018

The emissions scandal that engulfed Volkswagen three years ago continues to dog the carmaking giant, as German authorities hit the group with a €1.2bn fine.

The automaker said it accepted the penalty.

Volkswagen said it will accept the fine, therefore admitting responsibility for the scandal. Germany's government on Monday ordered Daimler to recall almost 240,000 cars fitted with illicit emissions-control devices, part of a total of 774,000 models affected in Europe as a whole.

The firm said it hoped that paying the fine would have "positive effects on other official proceedings being conducted in Europe against Volkswagen" and its subsidiaries.

The fine by Braunschweig comes after prosecutors in Munich on Monday widened an emissions cheating probe into Volkswagen's luxury carmaker Audi to include the brand's Chief Executive Rupert Stadler among the suspects accused of fraud and false advertising.

VW is far from being out of the woods.

"We work with vigour on dealing with our past", VW CEO Herbert Diess said in a separate statement.

Hausfeld represents aggrieved VW owners and shareholders on both sides of the Atlantic.

Just a year after being smacked with a $4 billion fine by the United States government, VW is getting handed a 1 billion euro fine by the German government for its diesel emissions cheating.

Volkswagen said it held a management board meeting to discuss the latest development in its emissions crisis with members of the supervisory board also being informed. "Further steps are necessary to gradually restore trust again in the company and the auto industry".

"The fact that the criminal risk has now been dealt with is good news", said Arndt Ellinghorst, an analyst with Evercore ISI.

Volkswagen slapped with 1 billion euro fine by German government