Daimler Drops on Report Software Affected U.S. Emissions Tests
(Bloomberg) -- Daimler AG fell after a German newspaper reported U.S. investigators detected software in its Mercedes-Benz diesel cars that might have been designed solely to pass regulatory emissions tests.
The vehicle maker developed several software applications that reduce or regulate the application of AdBlue fluid that helps eliminate harmful exhaust gases, Bild am Sonntag reported Sunday, citing confidential documents. Daimler employees doubted the legality of software functions that can help a tank of AdBlue last for the entire period between the car's scheduled servicings, the newspaper said, citing internal emails.
Daimler stock was the worst performer on Germany's DAX Index, declining as much as 2.4 percent, the most since Feb. 6, to 70.77 euros. The shares were down 2.1 percent as of 10:07 a.m. in Frankfurt.
Joerg Howe, a spokesman for the Stuttgart, Germany-based manufacturer, said the documents have “selectively been released in order to harm Daimler and its 290,000 employees.” Authorities who have been investigating Daimler for more than two years are aware of the documents and no complaint has been filed, he said Sunday in an email.
If the matter results in charges, it would be another blow to the German car industry in the U.S. In 2015, American regulators found that German carmaker Volkswagen AG deliberately evaded testing regimes with a cheating software that recognized if a car was on a test stand. Criminal and civil proceedings, as well as recalls, have resulted in fines and repair costs of some $30 billion for Volkswagen.
Daimler said it continues to cooperate fully with U.S. authorities, the Environmental Protection Agency and the California Air Resources Board, as well as a request by the Department of Justice to conduct an internal probe. Separately, Stuttgart prosecutors last year started a criminal investigation of Daimler employees over diesel-manipulation allegations.
To contact the reporters on this story: Arne Delfs in Berlin at adelfs@bloomberg.net, Elisabeth Behrmann in Munich at ebehrmann1@bloomberg.net.
To contact the editors responsible for this story: Alan Crawford at acrawford6@bloomberg.net, Anthony Palazzo at apalazzo@bloomberg.net, Tom Lavell
©2018 Bloomberg L.P.
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