Volkswagen AG (VWAG) firmly believes that the penalty of $75 million agreed in principle with the Australian Competition and Consumer Commission to resolve the regulatory proceedings was a fair amount and is carefully reviewing the Court's reasons for deviating from that amount. VWAG will determine in coming weeks whether it will appeal the decision of the Court.
Some 57,000 Volkswagen vehicles with EA189 diesel engines imported to Australia were involved in this matter. Most of these have subsequently had an update to the engine control software under the ongoing voluntary recall. The relevant authorities have confirmed that this update satisfies European and Australian emission standards.
Today's decision imposes a penalty only on VWAG. The case against Volkswagen Group Australia has been dismissed in its entirety with no orders made against Volkswagen Group Australia.
The case against Audi AG and Audi Australia in respect of Audi vehicles, has also been dismissed in its entirety with no orders made against any of the respondents to the Audi regulatory proceedings.
Today's decision relates specifically to the regulatory litigation and is separate from the in-principle settlement which has been reached in the customer class action proceedings (approval of which is scheduled to be heard by the Court on 26 March 2020).
Paul Pottinger 0434 755 158
