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Old 07-19-2002, 12:08 PM
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Thumbs down mercedes being investigated

NEW YORK (CNN/Money) - U.S. regulators are investigating possible price fixing by luxury automaker Mercedes-Benz, according to filing with the Securities and Exchange Commission.

The filing said the U.S. Justice Department has notified the automaker that it is conducting a criminal investigation in connection with the allegations made in a civil class action lawsuit pending in the United States District Court for the District of New Jersey. It said the company and its units have been served with a grand jury subpoena.

The civil suit charges Mercedes-Benz USA LLC (MBUSA) and its wholly-owned subsidiary Mercedes-Benz Manhattan, Inc. (MBM) participated in a price fixing conspiracy among Mercedes-Benz dealers.

"MBUSA and MBM intend to defend themselves vigorously," the filing said.

Mercedes-Benz is a unit of DaimlerChrysler AG, whose holdings also include Chrysler Group, its North American unit that operates the nation's No. 3 automaker. Mercedes-Benz USA operates independently of Chrysler Group.

U.S. shares ofDaimlerChrysler (DCX: down $2.70 to $44.85, Research, Estimates) were off 5 percent at midday following reports of the filing.
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Old 07-19-2002, 02:02 PM
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"Your Honor", my client only meant to introduce "no-haggle pricing" in their dealer lineup"...

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