Daimler halts truck engine deliveries on emissions concerns

Daimler is under scrutiny over how its diesel car engines use a urea nitrate additive called AdBlue, to neutralize emissions of nitrogen oxide, which can contribute to the formation of harmful smog and ozone. (Reuters)
Updated 08 July 2018
0

Daimler halts truck engine deliveries on emissions concerns

FRANKFURT: Germany’s Daimler has temporarily halted deliveries of a truck engine after finding that, in certain driving conditions, its emissions of nitrogen oxide (NOx) could exceed legal limits, the company said on Sunday.
Stuttgart-based Daimler, responding to a report in the Bild am Sonntag newspaper, said it had informed Germany’s Federal Motor Transport Authority of the issue last month and was in a “constructive” dialogue.
German automakers have been under intense scrutiny since the “Dieselgate” scandal of 2015, in which Volkswagen admitted to using illegal software steering its diesel engines to cheat emissions tests.
Volkswagen reached a multi-billion-dollar settlement in the United States, but the scandal continues to reverberate in Germany where the head of its Audi unit, Rupert Stadler, has been arrested in a separate investigation.
Daimler is also under scrutiny over how its diesel car engines use a urea nitrate additive, called AdBlue, to neutralize emissions of nitrogen oxide, which can contribute to the formation of harmful smog and ozone.
Germany’s Transport Ministry said last month that 774,000 Mercedes-Benz vehicles in Europe had been found to contain unauthorized “defeat” devices and ordered Daimler to recall 238,000 cars in Germany.
In the latest case, Bild am Sonntag reported that Daimler had found during internal checks that software running the OM 501 truck engine would, in certain circumstances, stop the injection of AdBlue.
In a statement, Daimler said the report was misleading and that the engine’s on-board diagnosis system was designed to switch off the flow of AdBlue in unusual circumstances such as when the engine was running on biodiesel.
This would prevent excessive injections of AdBlue leading to the release of ammonia, which in high concentrations can act as a respiratory irritant.
“In the course of regulator tests, Daimler AG found isolated situations when a six-cylinder heavy-truck engine of the Euro V standard slightly exceeded the relevant NOx limits,” the company said.
Daimler said it had undertaken a detailed analysis of the findings and informed the Federal Motor Transport Authority at the end of June.
The motor was sold in Mercedes-Benz trucks in Europe until 2013, and is currently on sale only outside Europe. “Until the technical issues are clarified, the company has taken a precautionary decision no longer to deliver this engine,” Daimler said.


RBS says Saudi bank merger boosts its core capital

Updated 16 June 2019
0

RBS says Saudi bank merger boosts its core capital

  • RBS had a 15.3% interest in Alawwal bank
  • The changes would boost the banks CET1 core capital ratio by 60 basis points

Royal Bank of Scotland (RBS) said on Sunday the completion of a merger between Alawwal bank and Saudi British Bank would lead to RBS shedding $5.9 billion of risk weighted assets and boost its core capital.
RBS, through Dutch subsidiary NatWest Markets N.V., was part of a consortium including NLFI and Banco Santander S.A. that held an aggregate 40% equity stake in Alawwal bank, the British bank said in a statement. RBS also had an interest equivalent to a 15.3% stake in Alawwal bank.
RBS said that as a result of the merger completion, it would recognise an income gain on disposal of the Alawwal bank stake for shares received in Saudi British Bank of almost $503 million and a reduction in risk weighted assets of nearly $5 billion.
RBS also said the deal would extinguish legacy liabilities of almost $377.
The changes would increase the bank's CET1 core capital ratio by 60 basis points, it said.
The merger will also help RBS to focus on its target markets, RBS chief executive Ross McEwan said in a statement.
RBS, which was rescued in 2008 with a nearly $57 billion capital injection by the British government, has been shrinking its overseas operations since the financial crisis to focus on its UK lending operations.