Mercedes-Benz under investigation

A German newspaper has reported that Mercedes-Benz is under investigation for possibly selling over a million cars with excess emissions in Europe and the US.

The Sueddeutsche Zeitung, citing a search warrant issued by a court in Stuttgart, Germanny, says prosecutors were examining the possible use of illegal software to manipulate emissions test results in Mercedes-Benz vehicles between 2008 and 2016.

Both the prosecutor and Daimer, Mercedes’ parent company, declined to comment to Reuters regarding the report, but Daimler said the firm was fully cooperating with authorities and did not believe cars will lose certification.

“We take comfort from the fact that this is a European issue, not a US investigation. We also do not believe these Merc cars will lose their certification,” analysts from Bernstein Research told Reuters. “Our judgement is that Merc will be asked to recall these cars for a ‘software fix.’”

Bernstein estimated that if Daimler faced penalties at a similar per-car level to Volkswagen, the total fine would amount to $275 million to $400 million.

Stuttgart prosecutors conducted raids on 11 different sites in Germany as part of a wider probe into possible excess diesel emission from Daimler, and two employees are under investigation.

Mercedes-Benz has dropped plans to seek US approval to sell its 2017 diesel models, and investigations from the US Justice Department and Environmental Protection Agency (EPA) are ongoing.

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