Volkswagen fined $1.6B

Volkswagen has been fined 1 billion euros (NZ$1.66 billion) over diesel emissions cheating, amounting to one of the highest ever fines imposed by German authorities against a company.

The German prosecutor's office ordered the fine for organisational deficiencies which resulted in failing to prevent "impermissible software functions" from being installed in 10.7 million cars between 2007 and 2015, according to Automotive News. 

“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 toward the latter being overcome,” Volkswagen said in a statement.

Analysts at Evercore ISI said the fine would likely help end all criminal investigations against VW in Europe, but would not settle shareholder lawsuits.

The new fine was not included in 28.5 billion euros (NZ$47.4 billion) of provisions that VW has already set aside for the diesel cheating scandal, and would hit earnings, Evercore ISI said.