DaimlerChrysler hires ex-FBI head Freeh amid probe

DaimlerChrysler, which owns the Auburn Hills, Michigan-based Chrysler Group, could face charges under a 1977 U.S. law that bars companies from paying foreign bribes.

In Germany, by contrast, bribing foreign officials and even deducting such payments from taxes was legal until 1999.

The Detroit News said DaimlerChrysler's internal probe had found that the bribes were seen at Mercedes as "an accepted way of doing business in many countries."

In DaimlerChrysler's annual report, which was filed in March, the world's No. 5 automaker disclosed that U.S. financial regulators and criminal investigators were looking into potential violations of anti-corruption laws.

In addition, DaimlerChrysler said then that it faced possible tax liabilities for misclassifying or omitting commissions and other payments and expenses.

It said it had taken charges related to these issues and had reduced its 2005 operating profit by the equivalent of about $21 million.

Shares of DaimlerChrysler were up 22 cents at $61.02 on the New York Stock Exchange.

The bribery probe is one of a number of difficulties DaimlerChrysler has faced this year, including weaker U.S. sales, a costly overhang of unsold Chrysler vehicles and U.S. marketing campaigns that faced criticism for failing to connect with consumers.