Daimler Benz Faces $1.2 bn Fine Over Diesel Emissions Fraud
Daimler Benz, the parent owner of Mercedes Benz, is facing a fine of around $1.2billon USD according to our industry insiders. Unnamed sources from within Daimler Benz have been in contact with this publication relating to discontent from within Mercedes Benz over the fallout of the fraud committed by the Daimler Benz top management. Our sources are from senior management who do not wish to become fall guys for any possible corporate prosecution. Authorities in Germany found that the Mercedes C Class and E Class were fitted with software designed to cheat on emissions testing.
Germany’s federal transport authority, the KBA, ordered Daimler Benz to recall 208,000 vehicles. Stuttgart Prosecutors are considering fining each recalled vehicle up to $5,000 dollars each. The investigation is on-going and Mercedes could face more recalls and further fines.
Prosecutors raided Daimler’s headquarters in 2017 searching for incriminating evidence. Daimler Benz is also facing prosecutorial heat from U.S. regulators over similar diesel car emissions fraud. The U.S. federal authorities will be less forgiving.
Germany and its carmakers are at the center of the whole diesel emissions fraud. It began with Volkswagen and like a domino effect BMW, Audi, and Porsche have been caught up in the fraud. Our insider sources are telling us that Mercedes, BMW and VW made a gentleman’s agreement on how to enact the fraud without being discovered.
Mercedes is a mightily rich company and is able to absorb any fine. Mercedes Benz makes on average $339 of profit every second, that’s £20,310 every minute. The company sells around 3 million vehicle units per year and has an estimated net worth of $84 billion USD under the Daimler Benz umbrella.
On the whole, the company generated a net income of $7bn USD in 2018 off the back of a $167bn USD revenue. The corporation has total assets valued at over $281 billion USD. So, a $1.2billion dollar fine is a lot of money even for Daimler Benz, but in reality, it’s more like a parking ticket. The show will go on regardless.