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Daimler Accused of Selling More Than 1M Cars With Illegal Defeat Devices

Company's stock takes heavy hit as a result.

by on Jul.13, 2017

Daimler AG, Mercedes-Benz parent, stands accused of selling more than 1 million diesel-powered cars equipped with a cheating device.

Mercedes-Benz parent Daimler AG appears to be the latest automaker to face accusations of rigging vehicles with “defeat device” technology in order to illegally pass emissions tests, according to a major German newspaper.

The report, by the Sueddeutsche Zeitung, sent shares of the automakers skidding in European trading on Thursday, though several industry analysts now say they don’t expect the report – if accurate to trigger the sort of massive blow to Daimler that was felt by Volkswagen AG. VW has so far spent about $30 billion as a result of its own diesel emissions scandal, while also having to repair or buy back as many as 11 million vehicles.

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According to the report, vehicles with excess emissions were sold in Europe and the United States between 2008 and 2016. Notably, Mercedes chose to withdraw its diesel models from the U.S. market this year rather than trying to get their emissions certified. (more…)