Canada fines Volkswagen $218 million for Dieselgate emissions

The automaker pled guilty to 60 counts of illegally importing into the country diesel cars that secretly exceeded limits placed on oxides of nitrogen (NOx) emissions.

As part of its guilty plea, Volkswagen admitted it had imported 128,000 Volkswagen and Audi cars, and around 2000 Porsche vehicles, which breached pollution standards.

The prosecution team said in a statement to CBC, supervisors and employees at Volkswagen "knew [it] was using software to cheat the US testing process".

Canada's automotive regulations are closely aligned with its neighbour to the south.

Volkswagen told Reuters and other news agencies: “The resolution acknowledges the extensive measures by Volkswagen to make things right in Canada and strengthen its global compliance policies.

"The payment from the company will be used to support environmental projects nationally and in the provinces across the country."

In August 2019, Volkswagen reached a settlement with Canadian owners, where it agreed to spend up to C$2.4 billion ($2.7 billion) to buy back or fix affected vehicles, as well as provide compensation.

The C$196.5 million fine agreed by the court and the automaker is below the C$265 million ($295 million) maximum penalty.

It is, however, easily the largest environmental fine handed out in Canadian history, eclipsing the C$7.5 million penalty handed out in 2014 to the operators of the Bloom Lake mine, where a tailings dam breach put 200,000 cubic metres of hazardous materials into nearby waterways.

So far the Dieselgate scandal has cost Volkswagen around €30 billion ($48.6 billion) in fines, compensation and repair costs.

In addition to paying large amounts of money to authorities and consumers in Germany, the US and Canada, the automaker has been fined 120 million zlotys ($46 million) in Poland for misleading consumers about diesel emissions.

Last year, the Australian Federal Court fined Volkswagen $125 million for making "false representations" about the emissions of over 57,000 diesel vehicles.