The Federal Court has just slapped German auto giant Volkswagen AG with a fine of $125 million for breaching its diesel emissions standards and consumer law.
According to a report by The Sydney Herald, “The fine - the biggest on record for a breach of Australian consumer law - was handed down on Friday after the Federal Court declared by consent Volkswagen AG did not disclose the existence of "two-mode" software when it sought approval to supply and import more than 57,000 vehicles into Australia between 2011 and 2015.”
The eye-watering 9-figure sum handed down by the Federal Court is some $50 million dollars more than the initial $75 million-dollar sum that had been agreed upon between the auto maker and the Australian Competition and Consumer Commission (ACCC).
"Volkswagen AG firmly believes that the penalty of $75 million agreed in principle with the Australian Competition and Consumer Commission (ACCC) to resolve the regulatory proceedings was a fair amount and is carefully reviewing the court's reasons for deviating from that amount," the company said.
“Volkswagen’s conduct was blatant and deliberate” said ACCC Chairman Rod Sims in a media statement. “This penalty reflects a trend of ever higher penalties for breaches of Australian consumer law,” Sims continued.
According to a statement from Volkswagen AG, the giant auto maker “will determine in coming weeks whether it will appeal the decision of the court”. According to the latest report by the BBC, Volkswagen has admitted that up to 11 million cars worldwide were fitted with a ‘defeat device’ whose software reduced the emissions of nitrogen oxide (NOx) in tests.
The report also stated that globally, Volkswagen AG has been forced to pay out over $47.4 billion dollars (USD $33 billion) in fines, recall costs and civil settlements in what’s been billed as Dieselgate.
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