Dispute over shutdown devices: Daimler recalls hundreds of thousands of diesel – and escapes billions of dollars in fine

06/12/2018

Dispute over shutdown devices Daimler has to recall hundreds of thousands of diesel cars

DPA

Daimler CEO Dieter Zetsche and Eckart von Klaeden (left), head of the Department of Politics and External Relations at the carmaker, had on Monday again to report to the Federal Transport Minister. Two weeks ago, the Ministry set Daimler a deadline to clarify the extent of possible manipulation

So far, Daimler has denied that at the exhaust gas purification of his diesel something could not be right. Transport Minister Scheuer sees it differently. Daimler turns in and recalls hundreds of thousands of vehicles. For a billion-dollar administrative penalty, the group comes around.

Daimler has to recall 774,000 diesel vehicles throughout Europe because of inadmissible shutdown devices in the emission control system. In Germany, 238,000 vehicles were affected, said Federal Transport Minister Andreas Scheuer (CSU) after a conversation with CEO Dieter Zetsche on Monday in Berlin. The federal government will “immediately” order an official recall.

In a video message, Scheuer said that they had “intensively and for hours” negotiated. Daimler wants to implement the recall, but announced a contradiction against it. Affected are next to the recalled van Vito also C-Class models and the off-road vehicle GLC. With a few exceptions, the cars are included in the group of three million diesel, for which Daimler has already announced a voluntary update of the engine software anyway.

Also read: How Dieter Zetsche wants to pull politics on his side

According to CEO Dieter Zetsche, Daimler does not have to pay a fine for the 774,000 diesel cars ordered to be recalled. When asked if the previously threatened by Transport Minister Andreas Scheuer order money of 5000 euros per vehicle from the table, Zetsche replied on Monday after the conversation with the Minister: “Yes.”

The car manufacturer will now immediately take care of the software, with which the diesel cars should comply with the nitrogen oxide limits. The legal question as to whether or not the functions complained of by the Federal Motor Transport Authority is a legally inadmissible defeat device will be clarified in the announced opposition proceedings.

Scheuer had ordered Zetsche already end of May to an emergency meeting, after the Kraftfahrtbundesamt (KBA) had ordered a recall of about 4900 copies of the Mercedes vans Vito because of an inadmissible shutdown device in the exhaust gas purification. The Office examined further models. By this Monday, it should be clarified how many vehicles the offending software functions are in use. Daimler is convinced that these are not inadmissible and has therefore announced an objection against the Vito recall notice.

Meanwhile, the number of probably equipped with manipulation software wagon is constantly increasing. According to a report of the “Bild am Sonntag” the KBA has now discovered five “inadmissible shutdown functions” on Daimler models. The Authority does not exclude that these software features are used in much of the newer diesel fleet (Euro 6) and almost a million vehicles could be affected,

Also read: Diesel forced abandonment – Hamburg and Munich begin

For CEO Dieter Zetsche is now much at stake. As the diesel scandal at the end of 2015 at Volkswagen, Zetsche had still called the sole problem of Volkswagen and speculation about a possible manipulation of diesel engines also at Daimler strictly rejected. If the authorities now confirm a possible illegal manipulation, then Zetsches reputation would be badly damaged, at the same time, the company would also expect fines and claims for damages.

It is rumbling in the Daimler workforce

According to the works council, diesel accusations are increasingly causing concern among Daimler employees. “Their biggest concern is that around the topic of exhaust even more could come on the table than previously known,” said the works council chairman of the engine plant in Untertürkheim, Wolfgang Nieke, the “Stuttgarter Nachrichten” and the “Stuttgarter Zeitung” (Tuesday) , Zetsche had initially said that at Daimler will not be cheated – that would have left the employees. At company meetings around June 20, employees would want to hear replies.

Germany’s top consumer advocate demands guarantees

Consumer advocates called for an end to the “salami tactic” in the exhaust scandal, “It can not be that one car company after another with years of delay and only after detective work is unmasked,” said the head of the Federal Consumer Association, Klaus Müller. “This salami tactic costs more and more consumer confidence and leads to a significant loss of value for the injured car owners.” Scouring must “put on the thumbscrews”. Daimler must give guarantees that the conversions are meaningful and do not cause any damage.

with news agencies

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