Published: Wed, June 13, 2018
Economy | By

Germany orders Daimler to recall 238,000 diesel vehicles

Germany orders Daimler to recall 238,000 diesel vehicles

The Stuttgart-based carmaker has said the US Department of Justice has inquired about the company's emission certification processes, and that German prosecutors in Stuttgart are investigating Daimler employees on suspicion of fraud and criminal advertising.

Mercedes-Benz is recalling hundreds of thousands of diesel vehicles across Europe after they were found to be fitted with illegal software. A device can be classified as illegal if exhaust filtering systems are deactivated too early or without good reason.

Mercedes is facing fresh scrutiny over its cars' emissions, after the German Federal Motor Transport Agency, or KBA, ordered parent company Daimler to recall 238,000 vehicles in Germany.

German newspaper Bild Am Sonntag reported that the Federal Motor Transport Ministry believes the majority of Mercedes' Euro 6 diesel engines are fitted with such devices, which could affect as many as 1million vehicles globally.

In January 2017, USA regulators ordered a stop-sale of several Fiat Chrysler Automobiles' diesel-powered models, including its Jeep Grand Cherokee, after regulators said it emitted more nitrogen oxide than allowed by law.


"We don't see any evidence that Daimler was designing software to deliberately cheat on emission testing", he said. Daimler hasn't contested the existence of the devices, but has argued that the devices may not be illegal.

That said, it has pledged to remove the software and to cooperate with authorities, the ministry said.

The recall was announced after meetings on Monday between Daimler executives and Germany's top regulator failed to resolve the issue, which related to unapproved software functions found in the carmaker's Euro 6 diesel engines, according to a report in Bloomberg.

Evercore ISI analyst Arndt Ellinghorst predicted the costs for the required software update for Daimler would be less than 100 million euros.

Zetsche or Daimler didn't say anything about what the company's software may be created to do, but it's the second large fix for the automaker in as many years.

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