Volkswagen, Audi and Daimler diesel fines (Germany)
In 2018 German prosecutors issued administrative fine orders of 1 billion euros to Volkswagen and 800 million euros to Audi over diesel emissions. In each order 5 million euros was the fine and the rest was the recovery of economic benefit.
Order of 13 June 2018; the remaining €995 million was recovery of economic benefit.
Status As of October 2026: fine orders against Volkswagen and Audi are final; the Winterkorn trial was suspended in July 2025; actual tax deduction of the payments not found.
- Volkswagen — A tax lawyer estimated 99.5% of the 1 billion euros could in theory be deducted, about 300 million euros back from the tax authority; actual use not found
- Lower Saxony — Received the fine; the cost of a deduction would be spread nationally through the federal sharing formula
- European public (nitrogen oxide exposure) — Listed in the sources reviewed as the harmed party in the diesel-related cases
What happened
On 13 June 2018 the Braunschweig public prosecutor issued an administrative fine order against Volkswagen AG in the context of the diesel crisis. The order totalled 1 billion euros: 5 million euros as the fine, which the sources reviewed is the statutory maximum for a negligently committed supervisory breach, and 995 million euros as recovery of economic benefit (Abschöpfung). Volkswagen did not appeal.
On 16 October 2018 the Munich II public prosecutor ended administrative proceedings against Audi AG with a fine order of 800 million euros, made up of 5 million euros as the fine and 795 million euros as recovery of economic benefit. Audi accepted the order. A figure of about 870 million euros for Daimler is noted in the sources reviewed but has not been verified.
Under German income tax law, section 4(5) no. 8 of the Income Tax Act (EStG) bars deduction of administrative fines. the sources reviewed, that the recovery of economic benefit can be deducted if taxes were not deducted when it was calculated. A tax lawyer estimated that Volkswagen could in theory deduct 99.5% of the 1 billion euros, with about 300 million euros returning from the tax authority; the fine goes to Lower Saxony, while the cost of a deduction is spread across the country through the federal sharing formula. The research did not find whether the deduction was actually used.
Individuals were also dealt with. In June 2023 the former chief executive of Audi, Rupert Stadler, received by plea agreement a sentence of one year and nine months, suspended, plus 1.1 million euros, for negligent fraud. The trial of Volkswagen's former chief executive, Martin Winterkorn, was suspended in July 2025 on health grounds. In the United States, the record lists a 2.8 billion dollar criminal penalty and 1.5 billion dollars in civil settlements for Volkswagen.
Separately, the European Commission fined Volkswagen and BMW 875 million euros for a cartel (2009–2014) that jointly limited the dosing of AdBlue, the fluid used in diesel exhaust cleaning. Daimler took part and was a whistleblower, and received no fine. The Commission described it as the first cartel to restrict use of a new technology.
- 2015Diesel emissions scandal begins (Germany and United States)
- 2018Braunschweig fine order against Volkswagen, 1 billion euros (13 June); Munich II order against Audi, 800 million euros (16 October)
- 2023Rupert Stadler, former Audi chief executive, receives suspended sentence by plea agreement (June)
- 2025Trial of Martin Winterkorn, former Volkswagen chief executive, suspended on health grounds (July)
How it looked
Shown
- The orders were reported by total: 1 billion euros for Volkswagen, 800 million euros for Audi.Volkswagen AG ad hoc announcements · Volkswagen AG (ad hoc announcement)
Recorded
- Volkswagen order: 1 billion euros = 5 million euros fine + 995 million euros recovery of economic benefit; no appeal.
- Audi order: 800 million euros = 5 million euros fine + 795 million euros recovery of economic benefit; accepted by Audi.
- Stadler: one year and nine months suspended plus 1.1 million euros, plea agreement, June 2023; Winterkorn trial suspended July 2025.
Who gained
Reached nature or the ground
Gained elsewhere
Responses on record
- volkswagen (13 June 2018): Did not appeal the administrative fine order of 13 June 2018. · Volkswagen AG (ad hoc announcement)
- audi (16 October 2018): Announcement headline: Audi AG accepts the fine and thereby acknowledges its responsibility. · Volkswagen AG (ad hoc announcement)
In court and with insurers
Lawsuits and rulings
- 2018–2018-06-13Claimant won€1bn EUR m: 5 fine + 995 recovery of economic benefitAdministrative fine order against Volkswagen AG (diesel crisis)Braunschweig public prosecutor · Administrative · Braunschweig public prosecutor → Volkswagen AG
Order of 1 billion euros, of which 5 million euros was the fine and 995 million euros recovery of economic benefit. Volkswagen did not appeal. Volkswagen AG (ad hoc announcement)
- 2018–2018-10-16Claimant won€800m EUR m: 5 fine + 795 recovery of economic benefitAdministrative fine order against Audi AG (diesel crisis)Munich II public prosecutor · Administrative · Munich II public prosecutor → Audi AG
Order of 800 million euros, of which 5 million euros was the fine and 795 million euros recovery of economic benefit. Audi accepted it. Volkswagen AG (ad hoc announcement)
- 2023-06Guilty pleaCriminal case against Rupert Stadler, former Audi chief executiveGerman criminal court · Criminal · Prosecution → Rupert Stadler
Plea agreement: one year and nine months suspended plus 1.1 million euros, for negligent fraud. AFP / TechXplore
- OngoingCriminal case against Martin Winterkorn, former Volkswagen chief executiveGerman criminal court · Criminal · Prosecution → Martin Winterkorn
Trial suspended in July 2025 on health grounds; he has not been convicted. AFP / TechXplore
- Claimant won€875m EUR m, Volkswagen and BMWAdBlue dosing cartelEuropean Commission · Regulatory · European Commission → Volkswagen, BMW (Daimler took part and was a whistleblower)
Fine for jointly limiting AdBlue dosing, 2009–2014; Daimler received no fine. The Commission called it the first cartel restricting use of a new technology.
Insurers
What nature saw
Nature's report opens this page. Below: further outcomes measured on the ground.
What we don't know
Nature
- Not measured Harm to nature: No independent ecological evaluation is on record.
Figures
- Insufficient Fines: Daimler; not verified.
Record
- Unclear Whether Volkswagen, Audi and Daimler actually deducted the recovery of economic benefit from taxable income: the research did not find this.
- Insufficient Reported but not independently verified: a fine of about 870 million euros for Daimler.
- Insufficient Reported but not independently verified: that the German deduction rule applies to recovery of economic benefit if taxes were not deducted in its calculation.
- None on record Daimler's own response is not in the record.
Did the harm stop?
The record shows the fine orders accepted in 2018 and individual proceedings into 2025. It shows no measure of emissions reduction tied to the payments.
Who paid?
The fine of 5 million euros went to Lower Saxony; the cost of any tax deduction of the 995 million euros would be shared nationally, but whether the deduction was taken is not established.
Sources
Company or project
- Administrative order imposing a fine (Bussgeldbescheid) being issued by the Braunschweig public prosecutor against Volkswagen in the context of the diesel crisisVolkswagen AG (ad hoc announcement) · 2018-06-13
- Administrative proceedings by the Munich II public prosecutor against Audi AG ended with a fine order; Audi accepts the fine (German original)Volkswagen AG (ad hoc announcement) · 2018-10-16
Press and investigations
- Ex-Audi boss sentenced in Dieselgate case (via TechXplore)AFP / TechXplore · 2023-06-27
Connected cases
- Volkswagen diesel emissions scandal Germany · 2015
- Volkswagen (Company) — here: Fined company (1 billion euros order); there: Manufacturer ordered to pay €1bn in Germany in 2018
- Audi AG (Company) — here: Fined company (800 million euros order); there: Volkswagen group subsidiary; €800m order in 2018
- Braunschweig public prosecutor (Public authority) — here: Issued the Volkswagen order; there: Issued the administrative order against Volkswagen
- Munich II public prosecutor (Public authority) — here: Issued the Audi order; there: Issued the administrative order against Audi
- AdBlue cartel (Daimler, BMW, VW) Germany · 2009–2014
- Volkswagen (Company) — here: Fined company (1 billion euros order); there: Fined, with BMW, 875 million euros in total
- Daimler (Mercedes-Benz) (Company) — here: Reported fine of about 870 million euros (unverified); there: Whistleblower under leniency programme; not fined
- End-of-life vehicle recycling cartel (EU carmakers, ACEA) European Union · 2002–2017
- Volkswagen (Company) — here: Fined company (1 billion euros order); there: Manufacturer; party to the separate AdBlue cartel
- Daimler (Mercedes-Benz) (Company) — here: Reported fine of about 870 million euros (unverified); there: Manufacturer; whistleblower, not fined
- Kariba REDD+ project (Zimbabwe) Zimbabwe · 2011–2025
- Volkswagen (Company) — here: Fined company (1 billion euros order); there: Credit buyer (at least €10m)
- Verra registry fee structure, auditor ties and the Follow the Money response United States · 2007–2026
- Volkswagen (Company) — here: Fined company (1 billion euros order); there: Credit buyer with a representative on Verra's advisory group