AUTO INDUSTRY NEWS

3.75 billion Euro fine looms over Daimler's head

3.75 billion Euro fine looms over Daimler's head image

Anton Andres / Daimler AG | June 07, 2018 12:49

Has Daimler been skirting diesel emission rules?

First, it was Volkswagen, now, it looks like it's Daimler's turn to go under the microscope of German investigators.

For the past couple of years it has been alleged that Daimler has been tampering with emissions testing. It's only now that the German government is clamping down on the automaker with the threat of a EUR 3.75 billion fine should the allegations be proven true. According to reports, German Transport Minister Andreas Scheuer questioned Daimler CEO Dieter Zetsche for calling a closed-door meeting regarding diesel software.

3.75 billion Euro fine looms over Daimler's head

So how did it come to this? Kraftfahrt-Bundesamt (KBA) or Germany's Federal Motor Transport Authority is said to be investigating certain Mercedes-Benz models, namely the C-Class, G-Class and Vito. It has been said that a regulator found software that can alter a vehicle's emissions rating. Scheuer reportedly said that up to 750,000 vehicles may have been fitted with the illegal, emissions tampering software. The Minister added that, if Daimler is proven guilty, they plan to impose a fine of 5,000 Euros per car.

The KBA said that emissions stemming from the Vito with 1.6-liter turbodiesels had engine electronic control units with programs that breached regulations. Daimler responded by appealing KBA's findings and will go as far as the courts to clear their name. If the appeal does fall through, about 80,000 units may have been fitted with the device. In the meantime however, the KBA has ordered a recall for Vito vans equipped with the 1.6-liter diesel.