Daimler ordered to recall 774000 cars

Daimler ordered to recall 774000 cars

This recall follows after Scheuer met Mercedes-Benz chairman, Dieter Zetsche, in Berlin to discuss what has been described as "irregularities in independent test results of various Mercedes-Benz models featuring the German vehicle maker's turbocharged four-cylinder diesel engine".

With the new recall, Daimler is escaping massive fines of approximately $4.4 billion (estimated).

While the KBA can only request the recall of cars within German borders, the transport ministry said: "The government will order 238,000 Daimler vehicles to be immediately recalled Germany wide because of unauthorized defeat devices".

Germany's Transport Ministry announced on Monday that 774 000 Mercedes-Benz vehicles in Europe had been found to contain unauthorised software, aka "defeat devices", and ordered parent company Daimler to recall more than 200 000 cars in Germany. The diesel Mercedes C-Class C220d and GLC 220d, as well as the Vito 119CDI, are said to be affected, with German authorities demanding the recall after "illegal switch-off devices" were detected.

It's now unclear how many models in the United Kingdom are impacted.

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".

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Daimler said it would refit the software but denied any wrongdoing.

Mercedes-Benz said it had developed a technical solution that would enable it to update the software, and Zetsche suggests the move could see the company avoid possible fines by the European Union.

Similar to Volkswagen's dieselgate scandal, it means these cars produce increased emission of harmful nitrogen oxides in the hands of customers compared to when they're tested for type approval by regulators.

The reports allege that two engines (OM 642 and OM 651) come with devices that shut down emissions controls under certain situations.

According to specialist Arndt Ellinghorst, an analyst with Evercore ISI in London, the recall will cost the automaker less than $120 million. "Overall, this outcome should de-risk the stock".

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