Reports in several publications point to a series of allegations of misuse of corporate funds.
Mercedes-Benz has fired its head of U.S. operations, Ernst Lieb, over allegations of financial irregularities.
Reports have emerged in several publications alleging that the well-liked Lieb was relieved of his duties due to expense abuses.
The Financial Times has reported that Ernst allegedly used Mercedes-Benz corporate funds to pay a household employee. The German newspaper Handelsblatt also ran a story claiming that Lieb allowed the lending of vehicles in exchange for airline upgrades.
Lieb had a previous disciplinary issue with Mercedes-Benz over the use of company funds to pay for a golf club membership for his wife. Lieb later reimbursed the company.
German companies have become particularly sensitive to issues of corporate corruption given a string of scandals over recent years of executives paying bribes to people in other countries.