September 24, 2019 - Administrative offense proceedings against Daimler AG fully concluded
- Negligent violation of supervisory duties results in fine in the amount of EUR 870 million
- Daimler AG refrains from taking legal remedy
- Earnings forecast of Company remains unchanged
Stuttgart, Germany - Today, the Stuttgart public prosecutor issued a fine notice against Daimler AG pursuant to Sections 30 para. 1, 130 para. 1 of the Administrative Offenses Act based on a negligent violation of supervisory duties in the area of vehicle certification in connection with deviations from regulatory requirements in certain Mercedes-Benz vehicles. According thereto, the negligent violation of supervisory duties occurred on the department head level. The Company has refrained from taking a legal remedy against the fine notice. The public prosecutor’s administrative offense proceeding against Daimler AG is thereby fully concluded.
According to the public prosecutor’s findings, the negligent violation of supervisory duties caused at least in part that certain vehicles of Daimler AG had partly deviated from regulatory requirements since 2008. In this context, the public prosecutor essentially refers to the known recall orders by the German Federal Motor Transport Authority (KBA). In order to get clarity also for the future with respect to the interpretation of relevant legal provisions in a complex technical environment, Daimler AG maintains the objections against the KBA orders. After weighing all aspects, Daimler has refrained from taking a legal remedy in the public prosecutor’s administrative offense proceeding. It is in the Company’s best interest to end the administrative offense proceeding in a timely and comprehensive manner and thereby conclude this matter.
The fine notice provides for a fine in the amount of EUR 870 million. The amount of the fine consists of a sanctioning part as well as a disgorgement part. The amount of the sanctioning part is EUR 4 million for the negligent violation of supervisory duties as assumed by the public prosecutor. It is thus below the statutory maximum amount. The amount of the disgorgement part is mainly determined by the profitability of the Company and amounts to EUR 866 million.
The Company’s full cooperation and the considerable quality control measures that have meanwhile been established in the context of the technical Compliance Management System have been considered to the benefit of the Company.
For the third quarter 2019 the fine does not result in a relevant additional negative effect on earnings. The Company maintains its earnings forecast as published.