Daimler Faces Fraud Investigation Into Sales of Diesel-Powered Cars
March 23 2017 - 7:44AM
Dow Jones News
By William Boston
BERLIN--German prosecutors have launched an investigation into
allegations that an undisclosed number of Daimler AG (DAI.XE)
employees may have committed fraud linked to sales of the company's
diesel-powered cars, a spokesman for the Stuttgart state's attorney
said Thursday.
Daimler dismissed the allegation that it manipulated diesel
engines to cheat on emissions tests. A company spokesman cited a
German government investigation that determined last year that
found no evidence of manipulation of the company's diesel
engines.
"Our engines have been made according to current laws and they
are in order," said Daimler spokesman Jo(umlaut)rg Howe.
The probe of Daimler employees comes on the heels of the
admission by rival Volkswagen AG (VOW.XE) of manipulating nearly 11
million diesel engines worldwide to cheat on emissions tests.
Volkswagen pleaded guilty to committing fraud in the U.S., agreeing
to pay nearly $25 billion in fines, penalties and compensation to
consumers.
-Write to William Boston at william.boston@wsj.com
(END) Dow Jones Newswires
March 23, 2017 07:29 ET (11:29 GMT)
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