New York (CNN Business) Daimler, the German auto company that makes Mercedes-Benz, has slashed its 2019 profit expectations by hundreds of millions of euros. The financial downgrade, announced Sunday, is the latest fallout from the diesel emissions scandal that has rocked the German auto industry.

The company said that "various ongoing governmental proceedings and measures relating to diesel vehicles" will affect the company's second quarter earnings. It said it expects an increase in expenses related to those proceedings.

Daimler said its profit for 2019 will be close to last year's level.

Shares in the carmaker declined 3.6% in Frankfurt on Monday. The stock has dropped nearly 20% from a recent high in April.

Volkswagen VLKAF 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 —— that it rigged millions of diesel engines to cheat on emissions tests

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