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Diesel Scandal Continues to Grow With New Daimler Recall

Company order to recall 238K vehicles in Germany.

by on Jun.14, 2018

Daimler AG's Dieter Zetsche attempted to assuage concerns of investors about diesel engines during the company's annual meeting.

The diesel cheating scandal is almost three years old, but it just seems to keep getting bigger.

Daimler AG has been hit by the German government with an order to recall 238,000 vehicles in Germany after they were identified has being equipped with illegal software that hide diesel emissions.

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In all, there are a total of 774,000 diesel vehicles across Europe, containing the so-called “defeat devices” software and Daimler indicated it would recall all of them Daimler said it would refit the software but denied any wrongdoing.

The diesel versions of the Mercedes C-Class, Vito and GLC models are the main ones affected, according to the German government.

(VW tagged with $1B fine in Germany for diesel-cheating scandal. Click Here for the story.)

Mercedes allegedly sold 1 million illegal diesels between 2008 and 2016.

VW admitted having fitted “cheat” devices in vehicles that made their engines appear less polluting than they actually were and has now spent more than $15 billion on fines, court settlements, legal fees, recalls and repurchase programs to clean up its diesel mess in the U.S. Only this week VW was hit with an additional $1 billion in fines.

Even as the costs and recalls continue for German automakers, senior executives are also facing criminal charges.

Earlier this week, Audi CEO Rupert Stadler was named a suspect in the diesel-rigging scandal, making him the highest-ranking active official in a probe that’s now focusing on upper management nearly three years after the carmaker admitted to cheating.

(Click Here to see why Daimler remains committed to diesel use.)

Daimler claims a new diesel engine will be able to meet all emissions regulations.

The homes of Rupert Stadler and another Audi board member were raided Monday, Munich prosecutors said in a statement. Both are being investigated for fraud and falsifying public documents relating to sales of diesel cars in Europe.

Last month, the U.S. Department of Justice charged Martin Winterkorn, the former chairman of the management board of Volkswagen AG, with conspiracy and wire fraud in connection with VW’s effort to circumvent U.S. diesel vehicle emissions requirements.

The indictment was issued by a federal grand jury sitting in Detroit.

(Daimler’s Zetsche talks about future with diesel. Click Here for the story.)

“If you try to deceive the United States, then you will pay a heavy price,” said U.S. Attorney General Jeff Sessions. The indictment alleged that Volkswagen’s scheme to cheat its legal requirements went all the way to the top of the company.

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