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Daimler fined €870M by German prosecutors over diesel violations

German automaker Daimler AG will pay an €870 million fine for violating diesel emission regulations, the automaker said Sept. 24.

The Mercedes-Benz parent said the Stuttgart public prosecutor issued a fine notice against the company for "a negligent violation of supervisory duties in the area of vehicle certification in connection with deviations from regulatory requirements in certain Mercedes-Benz vehicles."

Daimler said in a news release that it would not appeal the fine because it is in the automaker's "best interest to end the administrative offense proceeding in a timely and comprehensive manner."

The company said the fine will have no negative impact on third-quarter earnings, and it maintains its previous earnings forecast. In July, Daimler revised its profit and sales outlook for full year 2019, saying the group EBIT for 2019 will fall "significantly below prior year level." At the time, Daimler also said it anticipated another €1.6 billion in expenses than previously provisioned for ongoing governmental and court proceedings related to Mercedes-Benz diesel vehicles.

In August, it was reported that Daimler was facing a fine of up to €1 billion for diesel-related violations in Europe, according to Reuters. Germany's auto industry regulator, KBA, said it found software in Mercedes-Benz C-Class and E-Class vehicles that manipulated emissions tests.