On February 7, The Korean Fair Trade Commission (KFTC) said it decided to impose a fine of 20.2 billion won ($16.9 million) on Mercedes-Benz and its South Korean subsidiary for false publicity for its diesel passenger car exhaust emissions.
The KFTC said Mercedes-Benz installed illegal software on its vehicles that tampered with emissions data so that they emitted higher emissions in normal driving conditions than they would have in certification tests. It is reported that a total of 15 Mercedes-Benz cars have installed illegal software. The KFTC also noted that Mercedes-Benz also falsely advertised that emissions from its vehicles between August 2013 and December 2016 remained at the lowest level, meeting the EU Level 6 emission standard.
The KFTC said in a statement, "After the 'Dieselgate' incident, Mercedes-Benz still interfered with consumers' rational choices with false and deceptive advertising, and it is significant that we fined them." ”
Because it was not working hours, the foreign media could not immediately contact Mercedes-Benz for comment.
(Image source: Mercedes-Benz)
Last year, the KFTC fined or ordered rectifications on Autodevous's Korean subsidiary, Nissan Motor, Stellantis' Korean subsidiary and Porsche for similar operational emissions.
Following the divestiture of the truck division in December last year, Daimler AG officially changed its name to mercedes-Benz Group on February 1, indicating that it will become a flexible and independent division to cope with the electrification transformation of the automotive industry. As the electrification transition deepens, the company's CEO, Ola Kallenius, is seeking a higher market cap for Mercedes-Benz.
"I definitely have a chance to boost our price-to-earnings ratio," Mr. Con said, noting that other luxury and tech stocks have higher market capitalizations. "If we can improve cash flow and price-to-earnings ratios, Mercedes-Benz stock has a lot of potential."
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