Official reports have revealed that two Daimler divisions pleaded guilty to breach and violations of the U. S. Foreign Corrupt Practices Act as a part of a deal with the prosecutors to try and resolve all the allegations that the German manufacturer of cars paid major bribes to foreign officials.

Lawyers representing the units, namely the DaimlerChrysler Automotive Russia in Moscow and Daimler Export and Trade Finance in Berlin, entered the pleas on Thursday before the U. S. District Judge Richard Leon, which is in Washington.

Both the divisions of the automaker pleaded guilty to having conspired to breach the corrupt practices act, in addition to violating that anti-bribery provisions prevalent.

"We will do everything we can to maintain the highest compliance standards", Daimler Chairman Dieter Zetsche said.

Under the new terms put forward, charges slapped against Daimler and a Chinese subsidiary would be all dropped if the firm does not breach the corrupt practices act at all over the coming two years. Also, Daimler has agreed to undergo evaluation by an independent corporate monitor for a period of three long years.