Mercedes-Benz ordered to recall 774,000 vehicles
The German government has just asked Daimler to recall 774,000 Mercedes-Benz vehicles in Europe due to using diesel engines with actual NOx emissions higher than officially announced figures.
There have been recent consultations between German authorities and Daimler CEO Dieter Zetsche to discuss the company's vehicles using illegal emissions control software.
And German Transport Minister Andreas Scheuer's demand that the manufacturer immediately launch an official recall of vehicles using the banned device demonstrates the German government's tough stance on vehicles that pollute more than permitted levels.
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Recently, Minister Andreas Scheuer threatened to fine Daimler up to 4.4 billion USD.
However, according to analyst Ardnt Ellinghorst of Evercore ISI, Daimler was lucky that this recall did not come with the aforementioned "huge" penalty.
“We have seen no evidence that Daimler developed software to cheat emissions tests. With this recall, there is no need for a fine,” Scheuer said.
To fix the problem, Daimler will have to upgrade the engine software of the Mercedes-Benz Vito model, which uses a Renault 1.6-liter diesel engine. Meanwhile, some diesel-powered GLC and C-Class models will have to have new software installed.
However, Daimler said it is considering an appeal and may seek court intervention to reverse the decision.