Daimler AG begins its internal emission investigation at the request of the US regulators. The automaker unveiled its review process into the probable signs of wrongdoings. The company has not been involved in any irregularities in connection with emissions recording by the regulators. The US regulators are strictly examining the way auto firms submit the emissions certificate of their cars.
The Mercedes-Benz maker has been put under series of question from several government agencies because of its emissions managing performance of its few diesel vehicles in some environments. Daimler's disclosure comes after a US district jury sketched that Volkswagen AG has to recompense about 500,000 users of its diesel cars, THE WALL STREET JOURNAL reported.
In September, Volkswagen confessed to equipping emissions tests as asked by the US regulators, forcing it to pay billions of dollars in possible penalties and other related expenses. In addition to the criminal probe, Volkswagen will also repair or get back the defective cars and compensate the users. Following the Volkswagen emission outrage, many automobile companies across the globe were forced to raids and investigations.
Mitsubishi Motors also confessed to rigging emissions probe on some cars manufactured in Japan. Earlier in 2016, Mercedes cars of Daimler was put under pressure by an anticipated class-action case that was filed with regard to its BlueTEC diesel software. The technology locked up the emissions control systems in an environmental temperature below 50 degrees Fahrenheit. The diesel software also led to over production of nitrogen oxide - almost over 65 times bigger than the standard level set by the Environmental Protection Agency.
The lawsuit also accused the company of cheating customers with false advertisements of having pure diesel cars. Daimler said that it will defend the lawsuits legally and that it is cooperating with the US authorities in their investigations related to the company's testing methodology. Mercedes also refused to the use of faulty equipment, which impact emissions control systems. The company stated that nearly 100,000 cars equipped with BlueTEC technology were impacted.
BBC NEWS reported that even Peugeot has been facing break-ins by the French authorities with regard to pollutants control investigations. However, the French car maker defended that its emission control measures are compliant.
Meanwhile, Daimler has reported a 2% increase in its revenue for the first quarter of 2016. While, the car maker's quarterly net profit declined 32% to EUR 1.4 billion from EUR 2.05 billion in the same period in 2015. On a per share basis, the company's earnings dropped 31% to EUR 1.26 from EUR 1.83 in the previous year period.
Daimler's revenue amounted to EUR 35.05 billion, up 2% from EUR 34.24 billion in the year-ago period. The carmaker is facing many difficulties along including lawsuit investigations. Daimler remains hopeful to record a profitable quarter in the coming period, despite its legal crisis.
