Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

German prosecutors fine Daimler almost $1 billion for breaking diesel rules

Published 09/24/2019, 10:06 AM
© Reuters. The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin,

BERLIN (Reuters) - Daimler (DE:DAIGn) will pay a fine of 870 million euros ($957 million) for breaking diesel emissions regulations, German prosecutors said on Tuesday.

The maker of Mercedes-Benz cars said it would not appeal against the penalty and that it was keeping its earnings forecast unchanged.

The fine ends some of the legal uncertainty surrounding the Stuttgart-based company.

Prosecutors and regulators around the world have been investigating carmakers since Volkswagen's admission in 2015 that it cheated U.S. diesel pollution tests, which led to revelations of rule breaches by a number of manufacturers.

Separately on Tuesday, German prosecutors indicted top managers at Volkswagen (DE:VOWG_p), saying they delayed telling investors about the company's wrongdoing.

Stuttgart prosecutors said the fine on Daimler had no impact on ongoing proceedings into alleged manipulation by some individuals of engine software used in some Daimler diesel cars.

The prosecutors' office said Daimler had negligently violated its supervisory duties starting in 2008. As a result, certain diesel vehicles were certified despite exceeding emissions thresholds in some cases, it added.

"It is in the company's best interest to end the administrative offence proceeding in a timely and comprehensive manner and thereby conclude this matter," Daimler said, confirming it would not appeal.

Shares in the company were down 0.7% at 1330 GMT.

In May 2017, German prosecutors searched Daimler offices as part of a fraud inquiry related to possible manipulation of exhaust gas after-treatment in diesel cars.

Daimler also faces regulatory scrutiny by U.S. authorities. In February 2016, the U.S. Environmental Protection Agency asked Mercedes-Benz to explain emissions levels in some of its diesel cars.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

In June this year, Daimler cut its 2019 earnings outlook after lifting provisions for issues related to its diesel vehicles by hundreds of millions of euros.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.