Daimler, the parent company of Mercedes-Benz, could be coughing up a lot of cash very soon.

In a report by German magazine Der Spiegel, prosecutors in Stuttgart are reportedly set to fine the German automaker between 800 million to 1 billion euro for emissions-cheating diesel cars. The German motor vehicle authority (KBA) discovered that emissions cheating software were fitted to Mercedes-Benz C-Class and E-Class vehicles. They also ordered the automaker to recall around 280,000 units affected.

In addition to the recall, Stuttgart prosecutors are also considering to impose a fine of up to 5,000 euro for each vehicle sold with an emissions cheating device.

The prosecutor’s office says that investigations into the possible diesel emissions fraud by Daimler are currently underway. However, they said that the investigation was unlikely to be completed before the year ends. At the moment, Daimler has yet to make a comment regarding the matter.

Daimler could face 1 billion euro fine for diesel emissions cheat image

Supposedly, the cheat software allows diesel-powered C-Class and E-Class models to achieve lower emissions during controlled testing on a rolling-road. However, the software would supposedly not be functional when customers use the cars on the streets, in real-world situations.

If the emissions cheat were found to be true, it would not be welcoming news for Daimler. Considering the number of vehicles affected, it could turn out to be a repeat of the Dieselgate scandal that rocked the automotive industry a few years ago.

More so, share prices of Daimler have dropped since the new CEO Ola Kallenius took over last April. At the same time, company recently reported a EUR 1.6 billion loss for the second quarter of 2019. Having to pay a billion Euro fine will definitely hurt the company.

Source: Der Spiegel