Daimler AG Reaches Settlement with U.S. Securities and Exchange Commission (SEC) and U.S. Department of Justice (DOJ)

STUTTGART, Germany, April 1 /PRNewswire-FirstCall/ -- Daimler AG (stock exchange abbreviation DAI) announced today that it has reached a settlement of the U.S. Securities and Exchange Commission ("SEC") and the U.S. Department of Justice ("DOJ") investigations of violations of the Foreign Corrupt Practices Act (FCPA). Under the terms of the settlements, Daimler will pay a fine of USD 93.6 (approx. EUR 70) million and civil disgorgement of profits of USD 91.4 (approx. EUR 68) million. Sufficient provisions have been made to cover these charges.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20080409/NYW017LOGO )

Daimler cooperated with the SEC and the DOJ regarding the investigation into the past conduct. In the course of the investigation, which began in the fall 2004, Daimler took appropriate personnel and remedial actions to ensure that its conduct going forward complies with the Company's Integrity Code and with all applicable laws.

"Compliance has high priority at Daimler," stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG. "We have learnt a lot from past experience. Today, we are a better and stronger company, and we will continue to do everything we can to maintain the highest compliance standards."

Pursuant to the agreement with the SEC:

• The company agreed to settle a civil action against it brought by the SEC for violations of the FCPA.
• Daimler agreed to pay USD 91.4 (approx. EUR 68) million in disgorgement of profits.  
• Pursuant to the agreements with the DOJ:
• Daimler AG entered into a deferred prosecution agreement to resolve charges of violations of books and records provisions of the FCPA, pursuant to which Daimler agreed to pay a fine of USD 93.6 (approx. EUR 70) million.
• Daimler North East Asia Ltd., formerly known as DaimlerChrysler China Ltd., also entered into a deferred prosecution agreement with the DOJ to resolve charges of violations of anti-bribery provisions of the FCPA.
• Mercedes-Benz Russia SAO, formerly known as DaimlerChrysler Automotive Russia SAO, and Daimler Export und Trade Finance GmbH pleaded guilty to charges of violations of anti-bribery provisions of the FCPA in U.S. District Court in Washington.

The deferred prosecution agreements of Daimler AG and Daimler North East Asia Ltd. are premised upon the requirement that no further FCPA violations occur during the two year term of the agreements and that a comprehensive compliance program is maintained. This program is designed to ensure, among other things, compliance with anti-bribery laws such as the FCPA.  Upon successful satisfaction of the terms set forth in the deferred prosecution agreements, the matters against Daimler AG and Daimler North East Asia Ltd. will be dismissed without further action.

In addition, Judge Louis Freeh, will serve as a corporate compliance monitor for three years. Judge Freeh will monitor the Company's FCPA compliance program, among other things. Judge Freeh's work pursuant to the agreement will build upon his service since 2006 as Independent Compliance Advisor to Daimler concerning issues related to compliance, including organizational and policy changes.

Bodo Uebber, Daimler's Chief Financial Officer and a member of the Company's Board of Management said: "We have reviewed all areas of our business and consequently improved our business practices:  accounting, financial reporting, internal control systems and compliance. For the future, we are positioned very well."

Some of the measures implemented by Daimler include:

• Global extension of Daimler's compliance organization to achieve adherence to the Integrity Code of the Company and the governing laws.
• Appointment of local compliance managers in numerous group entities and business units all of whom report to the Chief Compliance Officer.
• Extension of an international training program, including regularly scheduled compliance conferences, training seminars and compliance information.
• Establishment of a Compliance Consultation Desk that offers tailored responses to questions concerning compliance issues at Daimler.

Further information from Daimler is available on the internet at: www.media.daimler.com

This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “should” and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including a lack of further improvement or a renewed deterioration of global economic conditions, in particular a renewed decline of consumer demand and investment activity in Western Europe or the United States, or a downturn in major Asian economies; a continuation or worsening of the tense situation in the credit and financial markets, which could result in a renewed increase in borrowing costs or limit our funding flexibility; changes in currency exchange rates or interest rates; the ability to continue to offer fuel-efficient and environmentally friendly products; a permanent shift in consumer preference towards smaller, lower margin vehicles; the introduction of competing, fuel-efficient products and the possible lack of acceptance of our products or services, which may limit our ability to adequately utilize our production capacities or raise prices; price increases in fuel, raw materials and precious metals; disruption of production due to shortages of materials, labor strikes, or supplier insolvencies; a further decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization programs at all of our segments, including the repositioning of our truck activities in the NAFTA region and in Asia; the business outlook of companies in which we hold an equity interest, most notably EADS; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety, the resolution of pending governmental investigations and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading “Risk Report” in Daimler’s most recent Annual Report and under the headings “Risk Factors” and “Legal Proceedings” in Daimler’s most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. If any of these risks and uncertainties materialize, or if the assumptions underlying any of our forward-looking statements prove incorrect, then our actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.

About Daimler

Daimler AG is one of the world’s most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world's biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides its customers with a full range of automotive financial services including financing, leasing, insurance and fleet management.

The company’s founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. As an automotive pioneer, Daimler continues to shape the future of mobility. The Group applies innovative and green technologies to produce safe and superior vehicles which fascinate and delight its customers. With the development of alternative drive systems, Daimler is the only vehicle producer investing in hybrid drive, electric motors and fuel-cell systems, with the goal of achieving emission-free mobility in the long term. This is just one example of how Daimler willingly accepts the challenge of meeting its responsibility towards society and the environment.

Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities on five continents. Its current brand portfolio includes, in addition to the world’s most valuable automotive brand, Mercedes-Benz, the brands smart, Maybach, Freightliner, Western Star, Fuso, Setra, Orion and Thomas Built Buses. The company is listed on the stock exchanges of Frankfurt, New York and Stuttgart (stock exchange symbol DAI). In 2009, the Group sold 1.6 million vehicles and employed a workforce of more than 256,000 people; revenue totaled EUR 78.9 billion and EBIT amounted minus EUR 1.5 billion.

SOURCE Daimler Corporate Communications

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED