Volkswagen Hit by Diesel Fine, Loan Proceedings in Australia
December 20 2019 - 2:52AM
Dow Jones News
By Max Bernhard
Volkswagen AG (VOW.XE) on Friday was hit with a record
diesel-emissions fine in Australia, and in a second blow regulators
there started penalty proceedings against one of the car maker's
financing units.
Australia's Federal Court ordered Volkswagen to pay 125 million
Australian dollars ($86 million) in penalties, the court's highest
issued fine to date, the Australian Competition and Consumer
Commission, or ACCC, said Friday.
Volkswagen breached consumer law by misrepresenting its
compliance with Australian diesel-emissions standards, the
competition watchdog said.
Volkswagen said in a statement that it will decide in the coming
weeks whether to appeal the court's decision.
Volkswagen admitted in 2015 to having rigged some 11 million of
its diesel vehicles world-wide with software that allowed them to
dodge government emissions tests. To date the German company has
had to pay billions of dollars in fines and other costs related to
what it calls the "diesel issue."
"Essentially, Volkswagen's software made its diesel cars, utes
and vans operate in two modes. One that was designed to test well
and another that operated when the vehicle was actually being used
and which produced higher emissions," ACCC Chairman Rod Sims
said.
In Australia, more than 57,000 vehicles sold between 2011 and
2015 were affected, the ACCC said.
Volkswagen said in its statement that "most of these have
subsequently had an update to the engine control software under the
ongoing voluntary recall" and that "the relevant authorities have
confirmed that this update satisfies European and Australian
emission standards."
Volkswagen also admitted to having made false representations
when it applied for the vehicles to be published on the Australian
government's "Green Vehicle Guide" website, the commission
added.
In a second blow, the Australian Securities and Investments
Commission said separately Friday that it has started penalty
proceedings against one of the company's financing units.
Volkswagen Financial Services Australia Pty Ltd. didn't make
appropriate checks before giving out 49,380 loan contracts, the
corporate watchdog alleged.
Credit providers are required to make inquiries about a
borrower's financial situation before handing out loans under
Australia's National Credit Act.
Write to Max Bernhard at max.bernhard@dowjones.com
(END) Dow Jones Newswires
December 20, 2019 02:37 ET (07:37 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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