Braunschweig senior prosecutor Klaus Ziehe said Thursday his investigation concluded the company failed to properly oversee its engine development department, but that the scandal cannot be attributed to a single department alone.
More than 10 million diesel vehicles were sold internationally with illegal emissions-controlling software.
Ziehe said the fine was "painful," adding it's the highest amount of money to be ever fined against a German company.
Prosecutors say the fine has to be paid within six weeks.
The scandal has already cost Volkswagen $20 billion in fines and civil settlements in the U.S.
Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.