* Daimler says is subject to government investigations
* Daimler says diesel emissions being probed
* Daimler says may face penalties, recalls
(Adds detail about prosecutor probes)
FRANKFURT, April 26 Daimler on
Wednesday reiterated that recent steps by United States
authorities to investigate diesel emissions pollution and
so-called auxiliary emission control devices could lead to
significant penalties and vehicle recalls.
Several federal and state authorities, including the U.S.
Department of Justice and Environmental Protection Agency (EPA)
as well as the Stuttgart prosecutor in Germany are investigating
the emissions of Mercedes-Benz diesel vehicles.
Last month, the Stuttgart prosecutor launched an
investigation against Daimler employees on suspicion of fraud
and misleading advertising tied to vehicle
"In light of the ongoing governmental information requests,
inquiries and investigations, and our own internal
investigation, it cannot be ruled out that the authorities might
reach the conclusion that Mercedes-Benz diesel vehicles have
similar functionalities," Daimler said in its quarterly report,
reiterating a statement from its annual report.
The inquiries and investigations are still ongoing, Daimler
said, adding that the outcome of these probes could not be
Daimler said in January 2017 that U.S. authorities appeared
to have taken a tough stance on what constitutes an illegal
defeat device, a step that could have implications for
Mercedes-Benz in particular.
Daimler said that in a notice of violation issued against
another manufacturer in January that regulators identified
functionalities "apparently including functionalities that are
common in diesel vehicles, as undisclosed Auxiliary Emission
Control Devices (AECD)".
In January the U.S. EPA accused Fiat Chrysler Automobiles NV
of illegally using hidden software to allow excess
diesel emissions to go undetected.
"If these or other inquiries, investigations, legal actions
and/or proceedings result in unfavourable findings, an
unfavourable outcome or otherwise develop unfavourably, Daimler
could be subject to significant monetary penalties, remediation
requirements, vehicle recalls, process improvements and
mitigation measures," Daimler said.
(Reporting by Edward Taylor; Editing by Ludwig Burger and Maria