Germany orders Mercedes to recall 774,000 diesel models

Germany orders Mercedes to recall 774,000 diesel models

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 Kraftfahrt-Bundesamt said 238,000 vehicles in the country have unauthorised software fitted and has demanded that they are fixed immediately by the auto maker. A device can be classified as illegal if exhaust filtering systems are deactivated too early or without good reason. A Daimler spokesperson told German language newspaper Bild am Sonntag, who first reported the story, that the automaker was "cooperating to a full extent and transparently with the KBA and the federal transport ministry".

The affected vehicles include the Mercedes-Benz Vito delivery van and the Mercedes GLC 220d and C220d.

The manufacturer saw 11 of its sites in Germany raided by prosecutors in May 2017, with the searches said to be linked to investigations "against known and unknown employees at Daimler, who are suspected of fraud and misleading advertising connected to manipulated emissions treatment of diesel passenger cars".

German Transport Minister Andreas Scheuer summoned Zetsche after the KBA's discovery, even as Daimler disputes they were illegal. However, Germany's road vehicle authority, the KBA, has taken issue with the emission control features amid suspicion they allow vehicles to emit excess pollution without detection.

Germany discovers ?illegal? devices that may be in 1M Mercedes diesels - Autoblog
Emissions cheat declared in 774K Mercedes-Benz vehicles

Daimler hasn't denied the existence of the functions, but have refuted the suggestion that they are illegal.

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

Daimler said in a statement only that it "confirmed the recall" and added that "open legal questions will be clarified in appeal proceedings".

Evercore ISI analyst Arndt Ellinghorst predicted the costs for the required software update for Daimler would be less than 100 million euros. "Overall, this outcome should de-risk the stock".

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