Mercedes recalls hundreds of thousands of diesel cars over emissions "defeat devices"

13 June, 2018, 03:31 | Author: Regina Silva
  • Mercedes recalls hundreds of thousands of diesel cars over emissions

Vehicles kept to legal emissions limits for harmful substances like nitrogen oxides during lab tests, only to exceed them as much as 40 times in on-road driving.

Daimler, like other auto manufacturers, uses urea nitrate liquids to neutralize nitrogen oxide emissions in exhaust fumes. 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.

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.

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

Recent weeks have seen Germany´s KBA vehicle licensing authority hit Volkswagen subsidiaries Audi and Porsche with mass recall orders over their engine control software, as well as a smaller batch of cars from rival BMW. Daimler hasn't contested the existence of the devices, but has argued that the devices may not be illegal.

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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.

Daimler Chief Executive Dieter Zetsche said on Monday that the carmaker had found a technical solution for updating the software on its vehicles, and he therefore expected the company to avoid a fine. We will file an objection against the decision issued by the KBA (German Federal Motor Transport Authority).

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

Zetsche or Daimler didn't say anything about what the company's software may be created to do, but it's the second large fix for the automaker in as many years.

'Overall, this outcome should de-risk the stock'.

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