Published: Thu, June 14, 2018
Business | By Eloise Houston

Germany orders Daimler to recall 238,000 diesel vehicles

Germany orders Daimler to recall 238,000 diesel vehicles

In all, the agency believes that this tallies up to around 1 million vehicles across all of Europe.

Daimler is being rapped by German authorities after a series of meetings between the two parties failed to properly explain away the discovery of five purported "illegal switch-off devices" found in the Benz's diesel engines.

The German government should approve hardware, rather than software alterations to manipulated vehicles to produce "an honest solution" to excessive emissions, Dudenhoeffer charged.

Other vehicle makers have been found to have fitted defeat devices.

The main problem models were the big-selling C-Class 220d sedan and wagon, the Vito van and the GLC 220d coupe SUV, the KBA confirmed.

Diesels have been under heavy scrutiny since U.S. authorities caught Volkswagen using illegal engine control software that turned off diesel emission controls in everyday driving.

The KBA has not indicated the age of the cars involved, although officials suggest they include latest-generation models with Euro IV emissions certification.

Another German auto major Volkswagen has agreed to pay $4.3 billion in fine and a massive recall of 500 thousand vehicles in US alone for installation of emission defeat devices in their vehicles.

German authorities have also discovered special programming in Daimler cars that they have classified as "inadmissible".

German media reports speculated earlier this week that the number could expand to more than 3 million Mercedes-Benz-badged vehicles as more devices were uncovered.

At the time of the allegations, FCA CEO Sergio Marchionne struck a similar tone to Daimler; both automakers said the emissions control devices were legal.

A Daimler spokesman said he would not comment on the BamS story, adding, "We are cooperating to a full extent and transparently with the KBA and the federal transport ministry".

Evercore ISI analyst Arndt Ellinghorst predicted the costs for the required software update for Daimler would be less than 100 million euros ($118 million).

"We don't see any evidence that Daimler was designing software to deliberately cheat on emission testing". "Overall, this outcome should de-risk the stock".

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