Daimler to be hit with up to €1bn diesel fine

The company is accused of possible manipulation of exhaust gas after-treatment in its diesel cars

Prosecutors in Stuttgart, Germany are set to fine Mercedes-Benz parent Daimler between €800m and €1bn for diesel-related violations, German magazine Der Spiegel said in its online edition on Friday. According to the media, German motor vehicle authority KBA had discovered cheating software fitted to Mercedes-Benz C-Class and E-Class vehicles and already ordered the carmaker to recall 280,000 vehicles.

In addition, a fine of up to €5,000 per vehicle is being considered by the Stuttgart prosecutor, the magazine said. Asked for a comment by Reuters, a spokesman for the prosecutor’s office said the investigation was ongoing and would not be concluded before year-end. In the meantime, Daimler declined to comment while the investigation was under way.

Prosecutors in Germany have used administrative orders to impose fines on Volkswagen, Audi and Porsche, blaming senior management for oversight lapses which allowed emissions cheating to take place. In May, Stuttgart prosecutors fined Porsche €535m euros and supplier Bosch €90m euros, while prosecutors in Braunschweig fined VW €1bn euros and Munich prosecutors imposed an €800m fine against Audi.

The legal action against Daimler now comes after in May 2017, country's prosecutors searched company's offices as part of a fraud inquiry related to possible manipulation of exhaust gas after-treatment in diesel cars. Yet, the manufacturer is facing regulatory scrutiny by United States authorities as well. In February 2016 the US Environmental Protection Agency asked Mercedes-Benz to explain emissions levels in some of its diesel cars.

Similar articles