The company said that “various ongoing governmental proceedings and measures relating to Diesel vehicles” will affect the company’s second quarter earnings for the 2019 fiscal year. It said it expects an increase in expenses related to those proceedings.
German automakers have faced years of scrutiny regarding harmful emissions that diesel vehicles produce. That scrutiny stems from a 2015 admission by another German automaker — Volkswagen (VLKAF) — that it rigged millions of diesel engines to cheat on emissions tests.
The revelation trashed confidence among consumers and regulators in diesel technology and cost Volkswagen tens of billions of dollars in recalls, legal penalties and settlements.
Daimler said at the time that it has been “cooperating extensively” with the Commission and did not expect to be fined.
On Sunday, Daimler said that its 2019 profit would be essentially flat to last year’s.
Source : Nbcnewyork
