The Dieselgate aftermath continues.
Porsche has just announced it will not appeal a penalty imposed upon it by the Stuttgart Prosecutor’s Office for violating the German Act on Regulatory Offenses. In other words, Porsche has agreed to pay a penalty following an investigation regarding its role in fitting vehicles with diesel engines. Dieselgate is still haunting VW Group brands. Porsche will now pay a total of €535 Euros, or $599 million according to the latest conversion rates, for negligent breach beginning in 2009 for failure to follow regulatory requirements in exhaust gas-related testing.
Parent company Volkswagen Group knew a heavy fine was coming and therefore began setting aside the money. Porsche says it will take the financial impact of this fine into account when it reports its second-quarter earnings.
In the press release announcing the fine, the legendary builder of the 911 also mentioned that it "never developed and produced diesel engines.” But that’s because it didn’t have to; other VW Group brands such as Audi handled that.
And, lo and behold, former Audi CEO Rupert Stadler spent several months in jail for his alleged role in Dieselgate and the cover-up. Former Volkswagen Group CEO Martin Winterkorn was recently sued by the US Securities and Exchange Commission (SEC) for his alleged role in defrauding US investors by failing to update them in a timely manner about the discovery of the "defeat devices” fitted into millions of VW diesel-powered vehicles. Porsche models such as the Cayenne, Macan, and Panamera were offered with diesel engines.
Porsche has since eliminated diesel entirely from its lineup to focus on "the development of cutting-edge gasoline engines, high-performance hybrid powertrains and electric mobility.” Basically, Porsche’s expensive settlement with the local German authorities means it is now clear from additional prosecution regarding this matter.
The Volkswagen emissions scandal, aka Dieselgate, affected about 11 million cars worldwide including 500,000 in the US beginning in the 2009 model year until 2015. Volkswagen’s diesel emissions cheating was discovered in 2014 and the US Environmental Protection Agency officially served VW a violation notice in September 2015. In the US alone, VW paid $25 billion in fines.