“We are not yet at the level that we aim to reach in the medium to long term,” said Dieter Zetsche, now retired, but a decade ago Chairman of the Daimler Board and Head of Mercedes-Benz Cars as the diesel engine fraud was well underway. It ain’t over…
The multi-billion-euro German Dieselgate scandal continues to pollute the images and empty the coffers of German automakers today as Daimler said it would pay a fine of 870 million euros for selling Mercedes-Benz diesel cars that polluted more than allowed since 2008. The Stuttgart public prosecutor issued a fine notice against Daimler AG pursuant to Sections 30 para. 1, 130 para. 1 of the Administrative Offenses Act based on a negligent violation of supervisory duties in the area of vehicle certification in connection with deviations from regulatory requirements in Mercedes-Benz diesel vehicles.
The negligent violation of supervisory duties occurred on the department head level. It appears that the Daimler has refrained from taking a legal action challenging the fine notice because senior executives are not implicated. The public prosecutor’s administrative offense proceeding against Daimler AG is thereby concluded. This is not so at Volkswagen Group where senior executives were indicted today.
“After weighing all aspects, 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,” Daimler claimed in complex statement.
The amount of the sanctioning part of the fine is EUR 4 million euros for the negligent violation of supervisory duties as assumed by the public prosecutor. The plea deal is below the statutory maximum amount. The amount of the disgorgement part is determined by the profitability of the Daimler and amounts to 866 million euros. In 2018, the Group had a workforce of around 298,700 and sold 3.4 million vehicles. Group revenues amounted to €167.4 billion and Group EBIT to €11.1 billion.
For Q3 2019 the fine does not result in a relevant additional negative effect on earnings. Therefore, Daimler maintains its earnings forecast as published for the moment. The SEC, among other regulatory bodies in the U.S. have yet to be heard from.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Death of the Diesel: Daimler Guilty of Selling Dirty Diesels in Germany – Pays $957,000,000 Fine Rather than Litigate
“We are not yet at the level that we aim to reach in the medium to long term,” said Dieter Zetsche, now retired, but a decade ago Chairman of the Daimler Board and Head of Mercedes-Benz Cars as the diesel engine fraud was well underway. It ain’t over…
The multi-billion-euro German Dieselgate scandal continues to pollute the images and empty the coffers of German automakers today as Daimler said it would pay a fine of 870 million euros for selling Mercedes-Benz diesel cars that polluted more than allowed since 2008. The Stuttgart public prosecutor issued a fine notice against Daimler AG pursuant to Sections 30 para. 1, 130 para. 1 of the Administrative Offenses Act based on a negligent violation of supervisory duties in the area of vehicle certification in connection with deviations from regulatory requirements in Mercedes-Benz diesel vehicles.
The negligent violation of supervisory duties occurred on the department head level. It appears that the Daimler has refrained from taking a legal action challenging the fine notice because senior executives are not implicated. The public prosecutor’s administrative offense proceeding against Daimler AG is thereby concluded. This is not so at Volkswagen Group where senior executives were indicted today.
“After weighing all aspects, 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,” Daimler claimed in complex statement.
The amount of the sanctioning part of the fine is EUR 4 million euros for the negligent violation of supervisory duties as assumed by the public prosecutor. The plea deal is below the statutory maximum amount. The amount of the disgorgement part is determined by the profitability of the Daimler and amounts to 866 million euros. In 2018, the Group had a workforce of around 298,700 and sold 3.4 million vehicles. Group revenues amounted to €167.4 billion and Group EBIT to €11.1 billion.
For Q3 2019 the fine does not result in a relevant additional negative effect on earnings. Therefore, Daimler maintains its earnings forecast as published for the moment. The SEC, among other regulatory bodies in the U.S. have yet to be heard from.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.