Daimler share price hit after emissions investigation news

Friday 22nd April 2016 | 0 Comments

 
Car manufacturer Daimler’s brands include Mercedes, Maybach and Smart
Car manufacturer Daimler’s brands include Mercedes, Maybach and Smart

Car marker conducting internal emission testing investigation

Daimler AG has confirmed that it is conducting an “internal investigation regarding its certification process related to exhaust emissions in the United States”. This action follows a request from the US Department of Justice (DOJ). As a result the company says it will “investigate possible indications of irregularities and of course take all necessary actions.”

Of course, Daimler has no other choice but to report its that is a damage-limiting we are “cooperating fully with the authorities” statement. Nevertheless, there was immediate share price fall-out after the announcement. Daimler, whose brands include Mercedes, Maybach and Smart, suffered a 7 per cent drop in response to the news.

The DOJ requested a review of Daimler AG’s “certification and admissions process related to exhaust emissions in the United States by way of an internal investigation in cooperation with the DOJ” on 15 April 2016. On 21 April 2016, upon further consultation, Daimler informed the DOJ about the above public “ad-hoc disclosure” of what it is doing.

Moving forward, Daimler reported that the company’s experience with the US authorities “has clearly shown that a conservative communication supports the constructive dialogue with the authorities” – perhaps a suggestion that Daimler won’t be talking too much about the case publically. At the same time, the firm sought to minimise speculation about potential legal action: “…class actions are considered to be without merit and Daimler will defend itself against them with all available legal means.”

At the same time as the emissions investigation news, Daimler reported a 31 per cent fall in first-quarter profits resulting from the cost of new car launches.

Tags: , , , , , , , , , ,

Category: Company News, International News, News