VW fined $1.2B by German prosecutors over diesel cheating

BERLIN -- Volkswagen was fined 1 billion euros ($1.18 billion) over diesel emissions cheating in what amounts to one of the highest ever fines imposed by German authorities against a company, public prosecutors said on Wednesday.

The prosecutor's office in Brunswick, Germany ordered the fine against the carmaker for having "impermissible software functions" in 10.7 million cars between 2007 and 2015, Volkswagen said.

As a result of the fine being imposed, regulatory offense proceedings against Volkswagen will be terminated. VW said it assumes this will help to settle further administrative proceedings against VW in Europe.

"Following thorough examination, Volkswagen AG accepted the fine and it will not lodge an appeal against it. Volkswagen AG, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step towards the latter being overcome," the company said in a statement on Wednesday.

The German fine follows a U.S. plea agreement from January 2017, when VW agreed to pay a criminal fine of $4.3 billion to resolve criminal and civil penalties.

"We work with vigor on dealing with our past," VW CEO Herbert Diess said in a separate statement. "Further steps are necessary to gradually restore trust again in the company and the auto industry."

VW has earmarked costs of about 26 billion euros related to rigged engine-control software in as many as 11 million diesel cars worldwide. The cheating was uncovered by U.S. authorities in September 2015 and triggered the deepest business crisis in the automaker's history.

Bloomberg contributed to this report