The company said that "various ongoing governmental proceedings and measures relating to Diesel vehicles" will affect the company's second quarter earnings for the 2019 fiscal year. It said it expects an increase in expenses related to those proceedings.
German automakers have faced years of scrutiny regarding harmful emissions that diesel vehicles produce. That scrutiny stems from a 2015 admission by another German automaker — Volkswagen (VLKAF) — that it rigged millions of diesel engines to cheat on emissions tests.
The revelation trashed confidence among consumer and regulators in diesel technology and cost Volkswagen tens of billions of dollars in recalls, legal penalties and settlements.
In April, the European Commission said Volkswagen, BMW (BMWYY) and Daimler (DDAIF) broke antitrust rules by acting together to delay the introduction of two emissions cleaning systems between 2006 and 2014.
Daimler said at the time that it has been "cooperating extensively" with the Commission and did not expect to be fined.
On Sunday, Daimler said that it's 2019 profit would be essentially flat to last year's.
- Charles Riley contributed to this report