Daimler probed by U.S. gov’t on emissions

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Daimler probed by U.S. gov’t on emissions

Daimler’s diesel engine emissions came under scrutiny after the carmaker was asked by the U.S. Department of Justice to investigate the certification process of its cars.

The maker of Mercedes-Benz vehicles said it’s cooperating fully with authorities and will investigate “possible indications of irregularities and of course take all necessary actions.”

The stock dropped as much as 6 percent in Frankfurt.

First requested by U.S. authorities on April 15, the investigation casts a further cloud over Daimler as the automaker got off to a slow start with an 8.5 percent drop in first-quarter earnings. Car pollution levels are being more closely monitored following the diesel cheating scandal at Volkswagen, which is expected Friday to release additional details on the billions of euros in fees and fines it faces as a result.

“The investigation may be procedural, following the class-action suits filed against Daimler about their diesel technology not working properly,” said Sascha Gommel, a Frankfurt-based analyst with Commerzbank.

German authorities will also present results Friday of a broader survey into cars that pollute more on the road then they do in the lab. Meanwhile, Mitsubishi Motors admitted this week that it manipulated fuel-economy tests, and PSA Group said late Thursday that its premises in France were searched by government fraud investigators.

Daimler is in the process of appointing a law firm to help with the internal probe and coordinate cooperation with the U.S. Department of Justice, CFO Bodo Uebber said Friday on a conference call. Bloomberg

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