October 16, 2018 11:26 CET
— UPDATED: Oct. 16 12:11 CET – adds analyst comment
FRANKFURT — Audi has been fined 800 million euros ($927.12 million) by German prosecutors for violations tied to V-6 and V-8 diesel engines that did not conform to anti-pollution standards.
Audi accepted the fine and will not lodge an appeal against it, the company said in a statement. By doing so, the automaker admits its responsibility for the deviations from regulatory requirements.
Audi said the fine would have an impact on its annual earnings.
“Considering these special items, the Audi Group will significantly undercut major financial key performance indicators forecasted for the fiscal year 2018,” Audi said in a regulatory statement.
Parent Volkswagen Group also warned its earnings would be affected.
Analyst firm Evercore ISI said it viewed the fine as “manageable” and “positive” for removing another uncertainty at VW Group in the wake of its diesel scandal. It noted, however, that VW still faces a shareholder case for €8.2 billion that it said could run for “years.”
In a research note following the announcement of Audi’s fine, the analyst said it believes markets will “look through the fine and view the resolution at Audi positively.”
Earlier this month, Volkswagen terminated the contract of Audi CEO Rupert Stadler, who is in custody and under investigation for suspected involvement in emissions cheating. Sales executive Bram Schot is acting as interim CEO.
Volkswagen Group received a similar 1 billion euro fine in June when prosecutors in Brunswick also used a so-called administrative order to punish VW for oversight problems which allowed millions of polluting cars to hit the road.
VW was fined for developing and selling polluting four-cylinder engines, while prosecutors in Munich at the time said they were examining whether to impose similar fines on Audi.
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