Porsche has just announced it will not appeal a penalty imposed upon it by the Stuttgart Prosecutor’s Office for violating the German Act on Regulatory Offenses. In other words, Porsche has agreed to pay a penalty following an investigation regarding its role in fitting vehicles with diesel engines. Dieselgate is still haunting VW Group brands. Porsche will now pay a total of €535 Euros, or $599 million according to the latest conversion rates, for negligent breach beginning in 2009 for failure to follow regulatory requirements in exhaust gas-related testing.
Parent company Volkswagen Group knew a heavy fine was coming and therefore began setting aside the money. Porsche says it will take the financial impact of this fine into account when it reports its second-quarter earnings.