News - Mercedes-Benz
Daimler slugged $1.4b over diesel emissions
Mercedes-Benz parent company fined for ‘negligent violation of supervisory duties’
25 Sep 2019
MERCEDES-BENZ parent company Daimler has copped an €870 million ($A1.4 billion) fine from the German public prosecutor for “negligent violation of supervisory duties” related to its production and sale of diesel vehicles that flouted emissions regulations.
In a statement, Daimler said it maintained objections to recall orders issued by the German Federal Motor Transport Authority (KBA) and cited in the public prosecutor’s case but decided to pay up rather than fight.
“Daimler has refrained from taking a legal remedy in the public prosecutor’s administrative offence proceeding,” said the statement.
“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.”
The prosecution was reportedly over 684,000 diesel vehicles sold in Germany that produced illegal levels of NOx emissions.
Daimler’s statement describes the accusation as a “negligent violation of supervisory duties in the area of vehicle certification in connection with deviations from regulatory requirements in certain Mercedes-Benz vehicles”.
In July 2017, the company issued what it called a “voluntary recall” of more than three million Euro 5 and Euro 6 diesel vehicles in Europe as accusations – which it denied – swirled over emissions cheating as authorities found some models to produce 10 times the permitted level of NOx.
Having predicted this week’s legal outcome, Daimler said its financial projections for the third quarter of this year remain unaffected.
“The fine does not result in a relevant additional negative effect on earnings,” the statement said. “The company maintains its earnings forecast as published.”
It was a busy day for car-makers in the German courts, with Volkswagen Group CEO Herbert Diess, chairman Hans Dieter Poetsch and former CEO Martin Winterkorn charged with market manipulation for allegedly taking too long to inform investors about the dieselgate emissions cheating scandal.
VW and the accused executives have all denied these allegations.
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