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Daimler takes a billion dollar hit for diesel violations



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2000 Mercedes-Benz C230 in wreckage, hood ornaments ̵

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There is a gasp with diesel in the air this morning, since all the news from Europe seems to come from compression-ignition-lurking Daimler is on the hook for the indictment of Volkswagen CEO Herbert Diess and the company's chairman, and is on the hook for nearly $ 1 billion in fines in the same country.

The penalty comes from the German prosecuting authorities who claim some 684,000 Mercedes-Benz vehicles were fitted with rig get finishing system.

A two-year probe into Daimler's diesel engines resulted in a $ 870 million ($ 960 million) fine for "negligent violation" of clean air standards. The engines found in certain C and E-class vehicles seem to emit illicit amounts of nitric oxide – the main ingredient in smog.

Last month Der Spiegel reported that Germany's transport authority, KBA, ordered Daimler to recall 280,000 vehicles, with the car manufacturer potentially fining € 5,000 per offending vehicle. At about the same time, strict emissions requirements in Europe forced Daimler to offer existing diesel owners a $ 3,350 grant to cover the cost of upgrading exhaust treatment systems in older models. Without it, many owners would find their personal vehicles banned from certain city centers.

"According to the State Attorney's finding, the negligent violation of supervisory duties caused at least in part that certain vehicles from Daimler AG had partially departed from regulatory requirements since 2008," Daimler said in a statement.

"After weighing all aspects, Daimler has refrained from taking a remedy in the State Attorney's administrative offense. It is in the company's best interest to conclude the administrative offense in a timely and comprehensive manner, thereby concluding this case. ”

[Image: Murilee Martin/TTAC]


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