Australia has slammed Volkswagen AG with a record $125 Million fine for deceiving consumers about the emissions from more than 57,000 diesel powered cars sold in Oz.

The German auto giant did not disclose the existence of "two-mode" software that made its diesel vehicles appear to be cleaner and greener when undergoing emissions testing, but switching to a higher emissions profile when in actual use out on the road.

For this, the company agreed to a $75 Million fine with the Australian Competition and Consumer Commission (ACCC).  But Federal Court justice Lindsay Foster had said that this didn't seem like much considering VW's size and the level of deception.  On Friday, the company was instead hit with the biggest fine on record for a breach of Australian consumer law.

"Volkswagen AG firmly believes that the penalty of $75 Million agreed in principle with the Australian Competition and Consumer Commission to resolve the regulatory proceedings was a fair amount and is carefully reviewing the court's reasons for deviating from that amount,” the company said in a statement, adding that it is considering appealing the higher ruling.