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Saturday 1 October 2016
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Daimler Stocks Tumble Upon News of Emissions Review

Daimler Stocks Tumble Upon News of Emissions Review

It hasn’t been a particularly great Friday for Daimler AG.

Shares for the automaker tumbled more than 5 percent after Daimler announced it is conducting an internal emissions investigation at the request of the U.S. Department of Justice.

Daimler says it is looking into how it certifies its emissions on Mercedes-Benz vehicles. The news is in wake of the Volkswagen TDI emissions scandal involving hundreds of TDI vehicles. Also, earlier this week Mitsubishi Motors admitted it had rigged efficiency tests on 625,000 vehicles.

The new Daimler investigation focuses on its entire emissions program, not just diesels.

mercedes diesel stocks tumble

Mercedes-Benz sets new record for diesels in the Pikes Peak hill-climb race with a C 250 d 4MATIC. June 2015.

“Daimler is cooperating fully with the authorities. Daimler will consequently investigate possible indications of irregularities and of course take all necessary actions,” Daimler said in a statement.

According to the Wall Street Journal, Daimler is facing extra scrutiny over the way some of its diesel emissions controls perform in certain environments. A group of U.S. Mercedes owners filed a class-action lawsuit in February over alleged issues with the company’s BlueTEC diesel technology. According to the filing, pollution-control technology turns off at cooler temperatures and when that happens vehicles emit nitrogen oxide emissions more than 65 times higher than permitted by the Environmental Protection Agency.

Daimler denies the claim.

“The company’s experience with the U.S. authorities has clearly shown that a conservative communication supports the constructive dialogue with the authorities. In addition the class actions are considered to be without merit and Daimler will defend itself against them with all available legal means.”

Daimler also reported a 32% drop in net profit for the first quarter of this year.

Photo Credit: Daimler/Mercedes-Benz