Daimler Says German Authorities' Diesel Investigations Likely to Result in Further Administrative Orders
24 Oktober 2019 - 02:24PM
Dow Jones News
By Max Bernhard
Daimler AG (DAI.XE), the maker of Mercedes-Benz cars, said it is
likely that German authorities investigating compliance of its
diesel vehicles will allege that more of its cars are equipped with
"impermissible" emissions-control devices, findings which could
trigger mandatory recalls and registration stops.
Daimler said Thursday in its third-quarter report that "it is
likely" that Germany's motor-transport authority KBA "will issue
additional administrative orders holding that some other
Mercedes-Benz diesel vehicles are also equipped with impermissible
defeat devices." The company previously said such regulatory action
"cannot be ruled out." The change in wording implies that Daimler
now sees a higher risk of further administrative action.
The updated risk assessment comes after the car maker agreed to
pay a nearly $1 billion emissions fine in Germany last month.
Analysts at Evercore ISI have said further fines could be looming
abroad. Meanwhile separate investigations in Germany are
continuing.
Legal proceedings in relation to diesel emissions could result
in additional costs, not yet covered by existing provisions.
"Daimler is subject to governmental information requests,
inquiries, investigations, administrative orders and proceedings as
well as court proceedings in connection with diesel exhaust
emissions. As legal proceedings are fraught with a large degree of
uncertainty, it is possible that in the context of their final
resolution some of the provisions we have recognized for them could
prove to be insufficient," the company said.
Daimler said it plans to object to such administrative orders
"in order to have the open legal issues resolved, if necessary by a
court of law."
Write to Max Bernhard at max.bernhard@dowjones.com;
@mxbernhard
(END) Dow Jones Newswires
October 24, 2019 08:09 ET (12:09 GMT)
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