Volkswagen fined €1bn in Germany as emissions scandal rumbles on

Payout marks end of criminal investigations
in Europe but carmaker still faces claims from motorists

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Public prosecutors in Brunswick concluded that the car
giant  “failed to properly oversee its engine development
department” by supplying cars with “impermissible software
functions”, Auto Express reports. 

VW has admitted fitting around 11 million diesel vehicles
with devices designed to circumvent emissions tests, the magazine
reports.

In a statement released yesterday, the company said that
it “accepted the fine and will not lodge an appeal”.
VW “admits its responsibility for the diesel crisis and
considers this as a further major step towards the latter being
overcome”, the statement continued.

Last year the German carmaker reached a deal with US presecutors
to pay $4.3bn (£3.2m) “to resolve criminal and civil penalties”
over the cheating devices, says Reuters. 

VW set aside a total of €25.8bn (£22.6bn) to cover costs related
to the emissions scandal.  

When will the scandal end?

VW’s agreement with German prosecutors is a significant
step in the seemingly never-ending emissions
cases. 

According to The Daily Telegraph, the deal is expected
to mark the end of criminal investigations into VW in Europe.

However, the agreement will not reduce the “growing number” of
claims against the company from motorists and shareholders, the
newspaper adds.

There is also an ongoing legal case against the company’s former
chief executive, Martin Winterkorn.

Winterkorn was indicated by US persecutors last month over
claims that he was aware the company was employing emissions
cheating devices “as early as 2014”, The Sunday Times says. 

Meanwhile, VW revealed last week that it plans to temporarily shut down its main facility in
Wolfsburg, Germany, to prepare for the new Worldwide Harmonised
Light Vehicle Test Procedure (WLTP) emissions tests, which come
into force on 1 September. 

VW’s development chief, Frank Welsch, told Autocar that the company needs “more people”
and “more time” to modify its cars in order to meet the stricter
requirements.