Emissions cheat declared in 774K Mercedes-Benz vehicles

Emissions cheat declared in 774K Mercedes-Benz vehicles

Daimler shares fell following a report that up to 1 million Daimler cars contain illegal defeat devices, as Chief Executive Dieter Zetsche prepared to meet the transport minister on Monday.

Germany on Monday (Jun 11) ordered the recall of some 774,000 vehicles from Mercedes-Benz maker Daimler across Europe, citing illegal "defeat devices" created to hide high levels of harmful emissions from regulators' tests.

Carmakers use software to manage exhaust emissions filtering and engine performance.

"The government will order 238,000 Daimler vehicles to be immediately recalled Germany-wide because of unauthorized defeat devices", the ministry said in a statement.

KBA believes Daimler's Euro 6 diesels are emitting polluting gases in excess of what the regulations say and the exhaust systems of those cars are featuring manipulating control software.

Germany can only order the recall of vehicles within its own borders, or of those vehicles issued with a pan-European road-worthiness certification via German authorities.

The emissions scandal has hung over the German auto industry since September 2015, when Volkswagen admitted to using software that could tell when a diesel vehicle was being tested and temporarily lower its toxic emissions to pass USA regulations.

Daimler has previously clashed with the KBA's findings regarding diesel emissions, and has maintained it has done nothing wrong.

The scandal has so far cost the world's largest vehicle manufacturer over €25 billion (US$29.5 billion) in fines, buybacks and compensation, and senior executives are under investigation over their roles in the cheating.

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