Volkswagen receives record fine for dieselgate in Australia
An Australian federal court has sentenced Volkswagen AG to a $125 million fine.
An Australian federal court has ordered Volkswagen AG to pay a record $125 million in fines after it was found guilty of violating Australian consumer protection law during the dieselgate emissions scandal.
The company had previously agreed to a $75 million fine, but federal court judge Lindsey Foster criticized it at the time for not being harsh enough, despite being about three times the then-record.
Volkswagen AG said in a statement that the initial fine "was a fair amount," adding that the company is "carefully looking into the reasons for the court's rejection of this amount" before determining "in the coming weeks whether it will appeal the court's decision."
For the record, Volkswagen AG admitted that when it attempted to import over 57,000 cars into Australia between 2011 and 2015, it did not disclose to the Australian government the presence of the Two Mode software, which allowed the cars to produce lower emissions of nitrogen oxides (NOx) when undergoing laboratory testing.
"Volkswagen's conduct was egregious and deliberate," Australian Competition and Consumer Commission (ACCC) chairman Rod Sims said. “This penalty reflects a trend towards increased penalties for violations of Australian consumer protection laws.
“Essentially, Volkswagen's software made its diesel cars, cars and vans run in two modes. One was designed for good testing and the other worked when the car was actually in use and produced higher emissions. This has been hidden from Australian regulators and the tens of thousands of Australian consumers driving these vehicles."
According to the ACCC, the Two Mode software was developed by Volkswagen engineers in 2006 and "kept under wraps until it was discovered in 2015."
“Had the affected Volkswagen vehicles been tested while operating in the mode Australians were driving, they would have exceeded the NOx emission limits allowed in Australia,” the regulator said in a press release.
“Volkswagen vehicles would not have received the ratings they received on the Green Vehicle Guide website if the government had become aware of the impact of Two Mode software on emissions test results,” Sims added.
"Volkswagen's behavior has undermined the integrity and operation of the Australian vehicle import regulations, which are designed to protect consumers."
In December 2016, the company released an Engine Control Unit (ECU) update that removed the Two Mode software and is now available for select Golf, Jetta, Passat, Passat CC, CC, Eos, Tiguan, Amarok and Caddy models equipped with EA189. diesel engines.
It should be noted that the federal court case against Volkswagen Group Australia was dismissed in its entirety, while the same applies to Audi AG and Audi Australia.
