Porsche Fined $600 Million for Diesel Cheating

Porsche Fined $600 Million for Diesel Cheating

German car manufacturers Volkswagen Group has confirmed that Porsche had been slapped with a close to $600 million fine for emission-cheating diesel engines. So far so good; the company has confirmed that it won’t be appealing the decision.

The charges fronted were inclined to “negligent breach of duty,” and this was also the premise for Porsche’s 2015 scandal in which the United States was the main complainant.

Porsche already declared that they would be dropping all their diesel engines. It is worth to note that Porsche itself doesn’t manufacture engines but outsources from Volkswagen, which was found guilty in 2015 for using a software that cheats the engine emissions test done by the company.

By 2018, the 3.0-liter V6 turbo diesel engine was already in the Porsche Panamera, Cayenne, and Macan. For the US market, the 2013-2016 Cayenne models were the only ones with this scandalous diesel engine. As of now, the US diesel Cayenne owners can register their claims by 31 December 2019.

Despite the hefty fines, the Porsche management has not been exempted from the ongoing criminal investigations. Some are already facing charges, while others are serving sentences. The former CEO is awaiting trial while R&D head Wolfgang Hatz spent nine months in jail, before being released on a $3.5 million bond. In the United States, two Volkswagen employees are serving their sentences while five others are under indictment.

Indeed, things have not been easy for the German auto manufacturer, and to date, they have lost $30-plus billions in civil and criminal fines, buybacks and all sorts of penalties around the violation of emission regulations.

Besides Volkswagen, BMW and Daimler have also been investigated, but there was no substantial evidence for the latter, while the former was fined $9.5 million. Audi was also involved in a similar saga and was fined close to $900 million.


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