Daimler Shares Down After Excess Emissions Report

Lawrence Kim
July 14, 2017

A search warrant for 11 premises of the German luxury carmaker claimed emissions were suspiciously high in engines used for nearly a decade in cars and vans including C, E and R class Mercedes.

"We take comfort from the fact that this is a European issue, not a USA investigation".

Daimler also faces an investigation by the United States Department of Justice, as well as a number of class-action lawsuits in the USA accusing it of false advertising. "Our judgment is that Merc will be asked to recall these cars for a "software fix", Bernstein Research analysts said in a note on Thursday.

Shares of Daimler AG (ETR:DAI) traded up 0.26% during mid-day trading on Tuesday, hitting €64.40.

In May, Stuttgart prosecutors, who are working with authorities in the U.S, conducted raids of 11 sites in Germany as part of a probe into Daimler and excessive diesel emissions.

The affected vehicles are primarily passenger cars powered by the Mercedes-Benz OM 651 inline 4-cyl diesel but also indicted are vehicles, including the Sprinter full-size cargo van, powered by the OM 642 3.0L V6 diesel.

"We have always said that there is an initial suspicion of manipulation in emissions treatment of diesel engines from Daimler", a spokesman for the Stuttgart prosecutors' office said.

Prosecutors investigating the case against two employees on suspicion that buyers were misled and cheated by using prohibited advertising.

Read: The DOJ Wants to Know if Daimler Faked Emissions Data in the U.S.

South Korea's environment ministry has launched a probe into some imported Mercedes-Benz vehicles, an official said Friday, amid reports about an emissions fraud scandal involving German luxury automaker Daimler.

In its quarterly report, Daimler had said that steps taken by USA authorities against another manufacturer in January identified software functionalities that are "common in diesel vehicles" as illegal defeat devices.

The newspaper said that state prosecutors in Stuttgart, Daimler's home town, were leading the inquiry.

Regulators have refused to grant Fiat Chrysler approval to sell 2017 US diesel models.

Other reports by Click Lancashire

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