Shares in German carmaker Daimler, the owner of Mercedes-Benz, dropped by almost 7% in morning trading after it revealed it is conducting an internal investigation into its emissions testing process at the request of the US Department of Justice (DoJ).
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Volkswagen said the money it was setting aside to pay for the scandal would drive it to a 2015 net loss of 1.36 billion, the largest in its history and the first on an annual basis since 1993.
German vehicle, truck and bus maker Daimler AG rebuffed questions about an internal investigation into its emissions certifications as news of the probe sent shares lower Friday.
Of course, Daimler responded by saying that the lawsuit was “without merit” adding that they’ll be “cooperating fully with the authorities“.
The Mercedes-Benz brand owner said it was conducting the probe at the request from the US Justice Department. The company was found by United States regulators to be fitting its cars with software that could cheat emissions tests.
“We can not go into details”, said Daimler’s chief financial officer Bodo Uebber on the DoJ investigation at a press meeting about the results.
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.
The DoJ sued VW in January, on behalf of the US Environmental Protection Agency, for installing test-cheating software and then concealing facts about it afterwards.
FILE – In this April 6, 2016 file photo visitors look at a Mercedes Benz concept auto prior to the shareholders meeting of the Daimler AG in Berlin, Germany. The company said it will also compensate buyers monetarily.
On Friday, Germany’s transport minister said five automakers agreed to recall 630,000 diesel vehicles in Europe following an investigation into emissions levels.
The deal has prompted pressure for fair treatment for drivers in Europe, a market that is much bigger than the U.S. for Volkswagen.
The company also said it will not publish the findings of its investigation into the diesel scandal later this month, as originally announced.
“Our conservative communication supports a constructive relationship with the authorities”, said chief financial officer Bodo Uebber.
Deutsche Welle has more on the recall of cars in Germany.
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Some models used technology to switch off the vehicles’ emissions treatment systems at certain temperatures to protect the engine, he said.
