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VW warns of profit slide after €800M Audi diesel emissions fine

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VW warns of profit slide after €800M Audi diesel emissions fine

Volkswagen AG said Oct. 16 that the German automaker's earnings for fiscal 2018 will be "directly" affected by the €800 million fine imposed on its Audi AG unit by the Munich public prosecutor's office as part of its diesel emissions scandal investigation.

The investigation found a breach of monitoring duties at the "emissions service/power engine approval" organizational unit of Audi that chiefly affected its V6 and V8 diesel engines.

Audi will not contest the ruling, which the premium carmaker said marks the end of the investigations. The investigations saw the departure of former Audi CEO Rupert Stadler, who has been imprisoned since June over his role in the scandal.

Volkswagen will record the fine as a negative special item and expects it to reduce group earnings for fiscal 2018.

Additionally, Porsche Automobil Holding SE, which holds a 30.8% stake in Volkswagen, lowered its fiscal 2018 earnings guidance to between €2.5 billion and €3.5 billion, from the previous outlook range of €3.4 billion to €4.4 billion, Porsche reiterated Oct. 16.