Mercedes-Benz owner Daimler fined almost $1BILLION by German prosecutors for breaking diesel rules

German car-making giant Daimler will be forced to pay a fine of €870 million ($957 million) for breaking diesel emissions regulations, German prosecutors said on Tuesday.

The owner of Mercedes-Benz and Smart cars said it would not appeal against the penalty and that it was keeping its earnings forecast unchanged despite the penalty.

The fine ends some of the legal uncertainty surrounding the Stuttgart-based company.

Stuttgart prosecutors said Daimler had 'negligently violated its supervisory duties' from 2008 and allowed certain diesel vehicles to be certified despite exceeding emissions thresholds The owner of Mercedes-Benz and Smart cars said it would not appeal against the penalty and that it was keeping its earnings forecast unchanged despite the penalty The owner of Mercedes-Benz and Smart cars said it would not appeal against the penalty and that it was keeping its earnings forecast unchanged despite the penalty

The owner of Mercedes-Benz and Smart cars said it would not appeal against the penalty and that it was keeping its earnings forecast unchanged despite the penalty

In a statement confirming it would not appeal the decisions, Daimler said: ‘It is in the company’s best interest to end the administrative offence proceeding in a timely and comprehensive manner and thereby conclude this matter.’

In May 2017, German prosecutors searched Daimler offices as part of a fraud inquiry related to possible manipulation of exhaust gas after-treatment in diesel cars.

Daimler also faces regulatory scrutiny by US authorities. 

In February 2016, the US Environmental Protection Agency asked Mercedes-Benz to explain emissions levels in some of its diesel cars.

In June this year, Daimler cut its 2019 earnings outlook after lifting provisions for issues related to its diesel vehicles by hundreds of millions of euros.

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