German regulator probes VW, Daimler for disclosure violations

Reuters News
Posted: Aug 07, 2017 8:22 AM

FRANKFURT (Reuters) - German markets regulator BaFin said it was probing whether Volkswagen <VOWG_p.DE> and Daimler had violated disclosure rules, following media reports that both carmakers made use of whistleblower provisions to regulators.

Media reports have said that both Daimler and Volkswagen made use of whistleblower provisions as a way to limit the potential fines from authorities examining possible cartel violations.

German magazine Der Spiegel reported last month that BMW, Mercedes, Porsche, Audi, and Volkswagen <VOWG_p.DE> may have used industry committee meetings to fix the size of tanks for AdBlue, a liquid used to treat nitrogen oxide in diesel emissions.

Bafin said on Monday it was examining whether carmakers had made use of a whistleblower provision, and whether this needed to be disclosed to investors.

"We have reached a stage where we are starting an investigation," a spokeswoman for BaFin said.

German newspaper Handelsblatt was first to report that Bafin had initiated a probe.

(Reporting by Edward Taylor; Editing by Maria Sheahan)