[bsa_pro_ad_space id=14]
The ‘Dieselgate’ fine is – by a significant margin – the largest ever imposed for breaching Australian consumer law.
Volkswagen AG will pay $125 million to the Australian government for cheating emission regulations, after the High Court today rejected a last-gasp appeal.
Between 2009 and 2015 the German manufacturer knowingly installed software in its diesel-powered cars to mask the extent of their toxic emissions output.
This was achieved through a program – commonly referred to as a ‘defeat device’ – which was able to recognise when the vehicle was under testing conditions, and adjust its engine mapping accordingly.
During real-world driving, nitrogen oxide emissions were almost 5000 per cent times higher than advertised (or permitted by law).
In Australia, the company is believed to have imported more than 57,000 vehicles between 2011 and 2015 fitted with the deceptive software.
After news broke of the scandal in late 2015, the Australian Competition and Consumer Commission (ACCC) brought charges against the car maker for its marketing of ‘Clean Diesel,’ and sought $75 million in damages.
The fine was increased by 50 per cent in 2019 by the Federal Court. Volkswagen appealed this decision, but today that appeal was dismissed.
The $125 million penalty is the highest ever imposed on a company in Australia for breaching consumer law.
The chair of the ACCC, Rod Sims, said: “This penalty reflects the seriousness of Volkswagen’s conduct and is a massive reminder for all businesses to take their obligations under the Australian Consumer Law seriously, and not mislead in pursuit of profit.
“Volkswagen misled consumers and regulators about whether the diesel vehicles complied with environmental standards. It deprived consumers who may have deliberately sought to buy a low emissions vehicle, of the ability to make an informed decision.
“What made it particularly egregious in this case is that if Volkswagen had told the truth, these vehicles would not have been legally allowed to be sold in Australia.
“Their conduct showed complete disregard for Australia’s vehicle import regulations, which are designed to protect consumers.”
Since the initial findings of fraud – which severely impacted stock prices, lead to fines cumulatively worth billions of Euros, resulted in criminal charges, and initiated years of legal action – Volkswagen has shifted to a broader adoption of electric platforms.
However, the manufacturer still does not offer a zero-emission vehicle in Australia.
He has maintained a primary focus on industry trends, autonomous technology, electric vehicle regulations, and local environmental policy.
As the newest addition to the Drive team, William was brought onboard for his attention to detail, writing skills, and strong work ethic.
Despite writing for a diverse range of outlets – including the Australian Financial Review, Robb Report, and Property Observer – since completing his media degree at Macquarie University, William has always had a passion for cars.
Read more about William Davis
[bsa_pro_ad_space id=15]