Dieselgate: Volkswagen loses appeal, Australian Federal Court upholds $125 million fine

Volkswagen has lost a Federal Court appeal against a $125 million fine handed down in the wake of the 'Dieselgate' saga.

Volkswagen and the Australian Competition and Consumer Commission (ACCC) had originally agreed to a $75 million fine, but in December 2019 the Federal Court described the fine as "manifestly inadequate", increasing it to $125 million.

In 2015, the German car company was found to have used on-board computer software to cheat emissions testing equipment – eventually known as the Dieselgate scandal.

Many of its diesel models – advertised in major markets as 'clean' diesels – produced significantly more harmful emissions than were stated, and have resulted in Volkswagen paying an estimated $46.5 billion in fines, compensation, and vehicle buybacks globally.

The $125 million fine is the highest to be handed down to a company for breaching Australian Consumer Law.

The ruling was against Volkswagen's parent company in Germany, with an earlier case against Volkswagen Australia being dismissed.

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