Suspended sentence for former Audi boss in emissions scandal.

A reminder of how careful entrepreneurs and business people must be when dealing with regulations and the law came this week with a heavy fine and suspended sentence for a former Audi boss embroiled in the diesel emissions scandal. Former Audi boss Rupert Stadler was handed a suspended sentence of one year and nine months by a Munich court for fraud by negligence in the 2015 diesel scandal. He was also fined 1.1 million euros, which will go to the state treasury and non-governmental organisations, the court said. Audi’s parent group Volkswagen (VOWG_p.DE) and Audi admitted in 2015 to having used illegal software to cheat on emissions tests.

Its discovery made headlines around the world and led to a recall of cars. According to prosecutors, engineers manipulated engines in such a way that they complied with legal exhaust emission values on the test bench but not on the road. Stadler was accused of failing to stop the sale of the manipulated cars after the scandal became known. Former Audi executive Wolfgang Hatz, also on trial with Stadler, was sentenced to a two-year suspended sentence with a 400,000 euro fine, while the third defendant – engineer Giovanni P. – was handed a year and nine months and a 50,000 euro fine. The prosecutor’s office and the accused can appeal until July 4.

Sales fall again on the High Street.

On the High Street retail sales fall again. Also this week, British retail sales fell again in June as household finances were squeezed by the rising cost of living but stores expected sales volumes to stabilise next month, a survey showed on Monday.  The Confederation of British Industry’s (CBI) monthly distributive trades index fell to -9 from -10 in May.
Martin Sartorius, CBI principal economist, said retailers would continue to face challenges in the coming months. “Another contraction in sales volumes attests to the difficult trading environment being faced by the retail sector. Household finances are still under pressure from high inflation,” Sartorius said.

A measure of expected sales in the month ahead remained flat at zero.