Daimler AG

Daimler stands by diesel despite growing controversy

German automaker Daimler's profits barely rose and were short of market expectations as its Mercedes-Benz luxury car division boomed while earnings lagged at its truck, van and bus businesses.

The second-quarter results were overshadowed by the growing controversy over diesel technology hanging over the automaker — and the auto industry in general — ahead of a meeting in Germany of carmakers and government officials next week.

The Stuttgart-based company reported Wednesday that net profit was up a scant 2 percent compared with a year ago, to 2.51 billion euros ($2.9 billion). Revenue increased 7 percent to 41.16 billion euros ($48 billion).

The profit was short of...

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