Audi has been fined 800million euros ($1.4billion NZD) for selling cars rigged to cheat on diesel emissions tests.
The case covered 4.9 million vehicles sold worldwide between 2004 and 2018 that were fitted with heavily-polluting six- and eight-cylinder diesel engines.
It comes three years after parent firm Volkswagen admitted using 'defeat devices' designed to cheat official emissions tests in 11 million vehicles sold worldwide.
Audi said on Tuesday in a regulatory statement: 'Considering these special items the Audi Group will significantly undercut major financial key performance indicators forecasted for the fiscal year 2018.'
It went on to say it would accept the fine and not lodge an appeal against in.
By doing so, it said it admits its responsibility for the deviations from regulatory requirements.
It added that the fine would 'significantly undercut' its financial targets for the year.
Parent company Volkswagen warned its earnings would also be affected by the ruling.
Earlier this month, Volkswagen terminated the contract of Audi chief executive Rupert Stadler, who is under investigation for suspected involvement in emissions cheating and is currently jailed.
Sales executive Bram Schot is acting as interim CEO.
Volkswagen Group received a similar 1 billion euro fine in June when prosecutors in Braunschweig also used a so-called administrative order to punish VW for oversight problems which allowed millions of polluting cars to hit the road.
VW was fined for developing and selling polluting four cylinder engines, while prosecutors in Munich at the time said they were examining whether to impose similar fines Audi.
Last month it was confirmed by the European Commission that it had launched a new investigation into the VW Group as well as BMW and Mercedes-Benz owner Daimler over suspicions the three vehicle manufacturers colluded to limit a roll-out of clean emissions control systems for their cars.
It's alleged the German brands were in cahoots to prevent competing with each other to develop and introduce two emissions technologies that are designed to reduce harmful pollutants from vehicles.
- Daily Mail