Daimler Allegedly Faced With $1.1 Billion Fine For Diesel Emissions Cheating Software

Daimler is reportedly going to be slapped with a huge fine, which can range between 800 million to 1 billion euros ($897 million to $1.12 billion), by German authorities over emissions-related violations.

German magazine Der Spiegel claims that the German Federal Motor Transport Authority (KBA) has discovered cheating software in diesel-powered Mercedes C-Class and E-Class models, ordering the car maker to recall 280,000 vehicles.

According to the same report, the Stuttgart prosecutor is considering a fine of up to 5,000 euros ($5,600) per vehicle.

Also Read: Cheating Emissions Software Leads To Mercedes-Benz GLK Recall In Germany

A spokesman for the prosecutor said that the process is ongoing and would not conclude before the end of the year. Daimler refused to comment before the investigation is over.

The prosecutor is also investigating Daimler employees for suspected fraud, with the report suggesting that an official announcement should come in September or October.

Back in May 2017, German authorities raided Daimler’s offices as part of another investigation related to emissions-tampering, and more specifically possible manipulation of the exhaust gas after-treatment system found in diesel-powered vehicles.

Moreover, Mercedes was recently forced to recall the diesel-powered GLK 220, which was in production between 2012 and 2015. Daimler is also scrutinized by US authorities, with EPA asking Mercedes for explanations back in 2016, regarding the emission levels in some of its diesel models.

Last May, German prosecutors in Stuttgart fined Porsche 535 million euros ($600 million) and supplier Bosch 90 million euros ($100 million). Similarly VW was fined with 1 billion euros ($1.12 billion) while Audi received a 800 million-euro fine ($896 million).