Daimler Slapped With $1 Billion Fine In Germany Over Rigged Diesel Cars’ Emissions

Germany has imposed a 870 million-euro ($960 million) fine on Daimler for cheating diesel emission rules, with the car maker saying that they will not appeal the penalty.

The German prosecutors found its Mercedes-Benz passenger car division sold around 648,000 vehicles that didn’t comply with the emission standards of nitrogen oxides, Bloomberg reports.

The car maker said in a statement that the fine isn’t going to affect significantly their third-quarter earnings and added: “Daimler has refrained from taking a legal remedy in the public prosecutor’s administrative offense proceeding. It is in the company’s best interest to end the administrative offense proceeding in a timely and comprehensive manner and thereby conclude this matter.”

Also Read: VW CEO Herbert Diess Indicted For Stock Market Manipulation

This is the latest episode in the aftermath of VW’s Dieselgate, which continues to unravel as the VW Group’s CEO Herbert Diess, Chairman Hans Dieter Poetsch and former CEO Martin Winterkorn were charged with market manipulation by German authorities.

German prosecutors added that the fine has no impact on the ongoing proceedings against individuals accused of tampering with the engine software in some of their diesel cars. Back in May 2017, Daimler’s offices were raided by the authorities as part of a fraud investigation on possible manipulation of diesel vehicles’ emissions.

Germany’s KBA motor authority found that around 280,000 C-Class and E-Class models were fitted with software that manipulated emissions during testing. That led to a recall of around 700,000 vehicles last year, while a few months back they also recalled 60,000 GLKs for the same reason. Daimler is also under investigation by the US Department of Justice and faces a class action lawsuit in New Jersey.

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  • Trocadero

    So VW & Daimler Benz have been caught fixing emissions tests, who is next?

    • Jason Panamera

      BMW is being investigated. Consider that VW means also Skoda, Seat, Porsche and Audi so there are less tergets to hit.

      • Daniela Wolf

        BMW already paid a fine.

        • Jason Panamera

          Oh, good to know.

        • Bash

          How much did they pay? a billion too?

          • Daniela Wolf

            8,5 million €

    • dumblikeyou2

      These cheat devices are easy to pinpoint; any of the German companies (all of them) whose engine’s stated output is lower than the actual output and still gets respectable fuel efficiency probably has a cheat device because there’s no other way to have both great power and low fuel consumption without something else being sacrificed i.e. emissions. Even the non-diesel engines have cheat-devices since they all claim to give their customers “free” hidden horsepower. BMW gives nothing away for free, but horsepower? Sure!!

  • Thomas Schiffer

    I blame the EU first, then the manufacturers. The limits for pollutants have become almost unrealistic and impossible to achieve with conventional and larger [powerful luxury] cars and SUVs.

    This is a clear move on the EU to force all of us into electric cars. The upcoming fleet output of 95g CO2 / km is essentially only possible with the lightest and most underpowered of microcars.

    • Daniela Wolf

      ~3 litre petrol.

  • Loquacious Borborygmus

    Where’s Das Fraud?

  • Aeromann

    The real question is : who will put this Billion in his pocket?

    • Bash

      Not exactly into someones pocket. it the German government!

      • Aeromann

        Maybe… Or Brussels. ?

        • Bash

          Why?

  • Craig

    Have no fear – the German government will spend that billion very wisely. [As most other governments would]

  • driv3r

    While Daimler is accepting the fine for violation of supervisory duties of a certain department, Daimler still is enforcing legal action against the claims of the KBA for the existence of a any sort of illegal use of software regarding the emissions of the named vehicles.

    There is a regulatory gap in the EU-law on how manufacturers can use the so called ‘component protection’ of certain parts of a vehicle. Component protection is completely legal. One aspect of component protection is the regulation of the emissions system of a vehicle to protect motor components from eccentric wear in cold conditions. Every combustion engine vehicle has such ‘component protection’ measures whether it be German, French, Italian, American, Korean or Japanese.

    The KBA claims Daimler has overused ‘component protection’ whereas Daimler says what they’ve done is completely covered by the ‘component protection’ laws. Now German and European courts will have to rule on that.

    • Kagan

      Just what I was going to write. They haven’t done anything illegal like vw.

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