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Published: Wed, June 13, 2018
Finance | By Loren Pratt

Germany orders Daimler to recall 238,000 diesel vehicles

The ministry statement did not say whether those cars outside of Germany would be recalled.

Other vehicle makers have been found to have fitted defeat devices.

It came on the back of a May missive from the KBA, which ordered Daimler to recall 4923 Vito vans that had been sold despite not meeting compliance regulations, while it "voluntarily" recalled three million cars under KBA pressure to improve emissions performance.

The KBA mentioned that it believed Daimler had equipped the device in the majority of its "Euro 6" classified diesel engines, meaning that at minimum, vehicles manufactured after September 2014 when the pollution standard became effective.

Just two months ago in April, Zetsche said Mercedes-Benz customers are showing more confidence in diesel by continuing to buy them in significant numbers. "An immediate formal recall because of prohibited shutoff devices" is required for the Mercedes-Benz GLC and C-Class models, which join the already recalled Vito van.

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. Daimler hasn't contested the existence of the devices, but has argued that the devices may not be illegal.

The Mercdes GLC is among the affected models

In January 2017, USA 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.

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".

The auto maker said in a statement: 'The functions are part of a complex emission control system created to ensure robust emission control in different driving conditions and over the life of a vehicle.

"We don't see any evidence that Daimler was designing software to deliberately cheat on emission testing".

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'.

