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Daimler shares drop nearly 7% over emissions testing probe
The emissions crisis erupted last September when the U.S. Environmental Protection Agency accused Volkswagen of installing software to circumvent emissions tests in more than 500,000 diesel-powered cars in the U.S.Volkswagen later admitted the software was installed on almost 11 million vehicles world-wide.
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US BlueTEC owners recently filed a class-action lawsuit in IL, alleging that their cars’ electronics were illegally programmed.
German officials, meanwhile, announced a sweeping emissions recall that will affect 630,000 diesel cars sold in Europe, including Audi, Mercedes-Benz, Opel, Porsche, and Volkswagen vehicles – but also European market Chevrolet, Ford, Jeep, and Land Rover vehicles. If the German automaker will recall all affected vehicles, the study said more than 130 additional early deaths in the country may be avoided. After Volkswagen, the authorities are looking more closely on the issue of emissions from cars. The announced sum was included in VW’s report over the 2015 fiscal year, in which it said the overall loss in earnings before and after amounted to 16.9 billion euros, because of the special provisions.
Daimler says the lawsuit’s claims are without merit and that the Justice Department investigation is unrelated.
Multiple tests, including one released this week by the British government, have shown that diesels from Daimler and other automakers, including Nissan Motor Co, Ford Motor Co and Hyundai Motor Co, perform differently in lab tests than they do on the road, even without defeat devices.
Volkswagen said it lost $6.2 billion past year, compared with a profit of $2.8 billion in 2014. Major names in the auto industry found themselves caught in headlights of a global engine-rigging scandal today as the Volkswagen supervisory board totted up the costs for the embattled German vehicle giant.
Daimler didn’t provide further details on the possible signs of irregularities that it says it’s looking into.
Joerg Howe, a spokesman for Daimler, said the company was cooperating with US authorities but declined to comment further.
Volkswagen had, on Thursday, arrived at a framework settlement with United States authorities to buy back or potentially fix about half a million cars fitted with illegal test-fixing software, and set up environmental and consumer compensation funds.
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The announcement comes seven months after the EPA said it would spot-check emissions across various diesel vehicles in the wake of the Volkswagen Group’s diesel emissions cheating scandal.