It's not just Volkswagen that's been paying off fines lately. Daimler, owners of marques such as Mercedes-Benz, Smart Automobiles, and Frieghtliner, have been fined almost $1 billion for supervisory negligence.
But why was Daimler fined in the first place, and why supervisory negligence? According to the Stuttgart public prosecutors office, the German automaker did not immediately recall approximately 684,000 cars which had anomalies in their emissions. They also stated that certain models have deviated from regulation since 2008 following recall orders from Kraftfahrt-Bundesamt (KBA) or the German Federal Motor Transport Authority.
According to the KBA, around 280,000 C-Class and E-Class diesel models were fitted with 'defeat devices' to alter its emissions result. Another 60,000 GLK diesels were found to have the same device. The rest is a mix of various models that were found to have emissions tampering software.
Instead of taking the matter to court, Daimler has agreed to settle the fine of € 870 million. That's approximately $ 960 million or Php 49.5 billion. In their statement, Daimler said, “(The company) 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”.
Daimler AG has reassured the public that considerable quality control measures have meanwhile been established in the context of the technical Compliance Management System.