Published: Wed, June 13, 2018
Markets | By Otis Pena

Daimler Allegedly Used 5 Defeat Devices In Diesel Cars

Daimler Allegedly Used 5 Defeat Devices In Diesel Cars

The Mercedes-Benz star is displayed on the front of a Mercedes-Benz vehicle at the annual news conference of German auto giant Daimler AG in Stuttgart, southwestern Germany, on February 1, 2018. A device can be classified as illegal if exhaust filtering systems are deactivated too early or without good reason.

"In our integrated emission control systems, there are several hundred functions interlocked with each other, which can not be considered independently from each other", a Daimler spokesperson told The Drive.

"The federal government will order an immediate official recall because of illegal defeat devices", Transport Minister Andreas Scheuer said in a statement.

The affected diesel models found to be fitted with these devices are the C-Class, Vito and GLC models, as these were the main ones affected.

Germany's road vehicle authority KBA has found five "illegal switch-off devices" in Daimler auto engines, newspaper Bild am Sonntag (BamS) reported on Sunday. Last year, Mercedes-Benz retrofitted roughly 3 million cars with modified emissions controls to bring those cars into compliance with Euro 5 and Euro 6 regulations.

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In January 2017, US 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.

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. The alleged emissions defeat devices were revealed by Kraftfahrt-Bundesamt (KBA), Germany's Federal Motor Transport Authority.

Ellinghorst estimated the cost to Daimler to be less than 100 million euros.

Daimler said in a statement only that it "confirmed the recall" and added that "open legal questions will be clarified in appeal proceedings". "Overall, this outcome should de-risk the stock".

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