Audi has been fined €800m (£700m) for failings that enabled the firm to sell nearly five million diesel with software created to cheat emissions testing.
German law enforcement authorities have fined Volkswagen's luxury division Audi 800 million euros ($1.3 billion), as the fallout continues after the carmaker sold cars rigged to cheat on emissions tests.
Both the Audi- and Volkswagen-developed engines were engineered to limit emissions during laboratory testing, but work in a normal non-compliant state when being driven on the road.
According to the findings of the investigation carried out by the Munich public prosecutor, duties had been breached in the "emissions service/power engine approval" organisational unit in the context of the monitoring of vehicles regarding their regulatory conformity.
Audi accepted the fine and will not lodge an appeal against it, the company said in a statement.
"As a negative special item, [it will] reduce the group earnings for fiscal year 2018 accordingly", it said in a statement.
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While the VW group has admitted 1.2 million vehicles were affected in the United Kingdom, it has refused similar payouts to owners on the grounds no European Union law was broken through the use of the software.
Former Audi chief Rupert Stadler remains in jail while prosecutors investigate individual involvement in the diesel scandal, and Volkswagen earlier this month cut ties with him.
VW paid a one-billion-euro (R16.45bn) penalty to Brunswick prosecutors in June over its own-brand vehicles.
For almost 10 years, Volkswagen and its subsidiaries produced diesel cars with exhaust control equipment rigged to shut off once they were tested by regulators.