FRANKFURT, Germany (Reuters):
DaimlerChrysler has suspended senior managers in its bus making division and the unit's head stepped down after an internal probe uncovered irregularities, the company said yesterday.
The world's fifth-biggest carmaker did not give specific reasons for the suspensions, but company sources said the probe found that favours may have been used to secure sales.
"In the context of a routine investigation of its own business, DaimlerChrysler has detected irregularities within its bus unit. This has led to the suspension of some executives, effective immediately," the company said in a statement.
"In addition, Wolfgang Diez, chief executive and president
of EvoBus GmbH and head of DaimlerChrysler Buses, has resigned from his position today for personal reasons," it added.
The company declined further comment on the matter and a phone call to Diez seeking comment was not immediately returned.
DaimlerChrysler shares were little changed after the news, ending 0.9 per cent higher at €46.39, in line with a 0.9 per cent gain in the DJ Stoxx European car sector index.
No connection
The sources said the suspensions had nothing to do with pending investigations by the U.S. Securities and Exchange Commission and
the U.S. Justice Department into allegations that DaimlerChrysler used slush funds to bribe foreign officials.
U.S. financial regulators and criminal investigators are also looking into suspected violations of anti-corruption laws via payments that the company has said dealt primarily with transactions involving government entities.
"This is an internal (investigation)," one of the sources said.
Internal auditors came across irregularities, the sources said, adding that sales successes in the bus division in recent months may have been achieved with favours.
Global sales at the Daimler-Chrysler buses and coaches unit rose 10 per cent last year to 36,200 vehicles and chassis, increasing its market share to 17 per cent.
Bus sales in the first three quarters of 2006 eased 2.0 per cent to 26,755.
