Germany fines BMW $9.6 million over diesel emissions

The number of vehicles showing irregularities in BMW’s case is far smaller, at just under 8,000. (AFP)
Updated 25 February 2019
0

Germany fines BMW $9.6 million over diesel emissions

  • Authorities had been probing BMW since early 2018 over suspicions it could have built a so-called ‘defeat device’ into some diesel cars
  • The number of vehicles showing irregularities in BMW’s case is far smaller, at just under 8,000

FRANKFURT AM MAIN: German prosecutors said Monday they had fined high-end carmaker BMW €8.5 million ($9.6 million) over diesel cars with higher harmful emissions than allowed, while adding the infraction was down to error rather than deliberate fraud.
“Munich prosecutors have ordered a fine of €8.5 million for the administrative offense of negligence in quality control,” investigators said in a statement.
Authorities had been probing BMW since early 2018 over suspicions it could have built a so-called “defeat device” into some diesel cars.
Such technologies allow the vehicle to reduce emissions under test conditions, while emitting far higher levels of pollutants such as nitrogen oxides (NOx) on the road.
In Germany, Volkswagen has paid one billion euros in fines over defeat devices following its 2015 admission that it installed them in 11 million cars worldwide, while high-end subsidiary Audi has paid €800 million.
And last week, prosecutors in Stuttgart said they had opened a “fine proceeding” against Mercedes-Benz maker Daimler over the same suspicions relating to 700,000 cars.
But the number of vehicles showing irregularities in BMW’s case is far smaller, at just under 8,000.
Prosecutors said that they believed “mistaken labelling of the part of the motor control software responsible for exhaust treatment” was behind increased on-road emissions.
“Extensive investigations” had found neither evidence of a purposely designed defeat device, nor of intent to commit fraud by BMW employees, they added.
Rather, “the company had not set up an appropriate quality control system” that could have prevented the error or revealed it after the fact, the prosecutors found.
In its most recent financial data release, BMW said it made a net profit of €1.4 billion between July and September, down 24 percent year-on-year as it contended with tough new emissions tests in the European Union.


Head of Saudi Arabia’s SRC: ‘Ask banks for a mortgage, and we will refinance it’

Updated 25 April 2019
0

Head of Saudi Arabia’s SRC: ‘Ask banks for a mortgage, and we will refinance it’

  • SRC CEO Fabrice Susini: One of our key objectives is to ensure that the banks are extending loans to more and more people
  • Extending home-ownership is one of the cornerstones of the Vision 2030 strategy to diversify the economy away from oil production

RIYADH: The head of the state-owned Saudi Real Estate Refinance Company (SRC) has made an unprecedented offer to the Kingdom’s home-seekers to underwrite future mortgages.
Speaking at the Financial Sector Conference in Riyadh, Fabrice Susini, SRC CEO, told the audience: “Ask them (the banks) for a mortgage, and we will refinance it.”
Although Susini later clarified his remarks to show that he still expected normal standards of mortgage applications to be met, the on-stage show of bravado illustrates SRC’s commitment to facilitate home-ownership in the Kingdom.
“Obviously if you have no revenue, no income, poor credit history, that will not apply. Now if you have a job, it is different. We have people in senior positions at big foreign banks that could not get a mortgage,” he explained.
He said that Saudi banks have traditionally assessed mortgages on the basis of “flow stability” of earnings. Government employees, or those of big corporations like Saudi Aramco and SABIC, found it easy to get mortgages “because you were there for life.”
“One of our key objectives is to ensure that the banks are extending loans to more and more people. The government is pushing for entrepreneurship, private development, private jobs. If you work in the private sector and cannot get a mortgage the next thing you will do is go to the government for a job,” Susini said.
Extending home-ownership is one of the cornerstones of the Vision 2030 strategy to diversify the economy away from oil production. Saudi Arabia has one of the lowest rates of mortgage penetration of any G20 country — in single digit percentages, compared with others at up to 50 percent.