Published: Thu, June 14, 2018
Markets | By Noel Gibbs

The manufacturer is Recalling about 700,000 faulty Mercedes in Europe

The manufacturer is Recalling about 700,000 faulty Mercedes in Europe

The news of the recall comes after the German transport minister, Andreas Scheuer, met with Mercedes chairman Dieter Zetsche in Berlin to discuss what has been described as "irregularities in independent test results of various Mercedes-Benz models featuring the German carmaker's turbocharged four-cylinder diesel engine". Zetsche said that the talks with the government were constructive.

When asked if the defeat devices were potentially installed in 220d-badged versions of the cars sold here, Mercedes-Benz Australia spokesman David McCarthy said: "We do not now know".

It is believed to have affected around eight million vehicles sold to consumers across the globe. Daimler had stated that it was going to appeal this decision. The updates were meant to bring older cars into compliance with Euro 5 and Euro 6 emission regulations.

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Vehicle maker Daimler has been ordered to recall nearly quarter of a million Mercedes cars in Germany after they were found to be fitted with software created to fool emissions tests.

It relates to four-cylinder turbo-diesel engines fitted to Euro6-compatible 220d variants of the C-class and GLC SUV, as well as the Vito van.

This latest development follows news past year that saw Daimler accused of selling over one million cars with excess emissions in Europe and the USA, following earlier reports in the German media.

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London's Evercore ISI analyst Arndt Ellinghorst stated that there is no evidence that Daimler had designed software as a deliberate attempt to cheat on emissions tests. Still, the software fix will reportedly cost the German automaker $118 million. And with this recall, he said, the company would not have to pay any hefty fines.

Dieter Zetsche, CEO of German auto maker Daimler arrives for a meeting at Germany's Traffic and Infrastructure Ministry in Berlin on Monday, June 11, 2018. This recall, however, should put things back on track for the company and ease pressure from the authorities. Daimler has previously clashed with the KBA's findings regarding diesel emissions, and has maintained it has done nothing wrong.

At the time of the allegations, FCA CEO Sergio Marchionne struck a similar tone to Daimler; both automakers said the emissions control devices were legal.

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The company has strenuously denied cheating on diesel emissions.

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