Volkswagen to appeal ‘dieselgate’ fine

German carmaker says $125m figure is unfair after judge accuses ACCC of being “on the same side” as VW before levelling record punishment.

VW has paid more billion od dollars in “dieselgate” fines. (Photo by Julian Stratenschulte / dpa / AFP) / Germany OUT

Volkswagen will appeal Australian record fines levelled by the Federal Court in the wake of its “dieselgate” scandal.

The German manufacturer has faced legal action around the world after using software to mask the real-world diesel emissions of popular models, misleading customers and environmental regulators in many markets.

It says a $125 million fine handed down by Justice Lindsay Foster is unfair.

VW used illegal software to determine when cars were being tested by emissions regulators. (Photo by THOMAS KIENZLE / AFP)

The previous record fine for a car manufacturer in Australia was $10 million, paid by Ford to address what the ACCC described as “unconscionable” conduct surrounding faulty dual-clutch transmissions.

Volkswagen and the ACCC agreed on a $75 million settlement made on what the car maker described as “a no-admissions basis” in October 2019.

Justice Foster said at the time he was “really outraged” by the proposal, telling the ACCC it should not agree to do “whatever the Germans want” and be “on the same side”.

Returning to court in December, Justice Foster said the agreed $75 million figure was “manifestly inadequate” given the manufacturer’s “egregious” and “calculated” breaches, and that $125 million was a more suitable deterrent for other manufacturers.

NSW motorists Alister Dalton and Robyn Richardson took part in successful class actions levelled at VW and Audi.

Volkswagen AG, the German parent company to its Australian importer, released a statement this week saying it “firmly believes that the penalty agreed in principle with the Australian Competition and Consumer Commission (ACCC) and submitted jointly to the Court as appropriate to resolve the regulatory proceedings was a fair amount”.

VW says a notice of appeal filed in February “relates specifically to the additional $50m imposed by the Federal Court of Australia”.

The Federal Court will consider Volkswagen’s appeal in coming months.

VW and Audi have already agreed to pay customers affected by the issue between

$87 million and $127 million in class action settlements.

Originally published as Volkswagen to appeal ‘dieselgate’ fine