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Mercedes-Benz faces massive recall in Europe

Mercedes-Benz faces massive recall in Europe

It added that a total of 774,000 Mercedes vehicles being used across Europe contain the defeat devices.

This latest development follows news previous year that saw Daimler accused of selling over one million cars with excess emissions in Europe and the U.S., following earlier reports in the German media.

German authorities have also discovered special programming in Daimler cars that they have classified as "inadmissible".

This recall follows after Scheuer met Mercedes-Benz chairman, Dieter Zetsche, in Berlin to discuss what has been described as "irregularities in independent test results of various Mercedes-Benz models featuring the German auto maker's turbocharged four-cylinder diesel engine".

Following a second meeting between Daimler CEO Dieter Zetsche and German Transport Minister Andreas Scheuer in Berlin on Monday, the government said it would issue an official order to make the carmaker withdraw a total of 238,000 cars in Germany alone.

It relates to four-cylinder turbo-diesel engines fitted to Euro6-compatible 220d variants of the C-class and GLC SUV, as well as the Vito van.

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This is specifically linked to two functions of the engine control in Mercedes-Benz Vito vans.

The announcement came a day after Germany's Bild am Sonntag newspaper reported that the national road vehicle authority KBA had found five illegal switch-off devices in Daimler diesels.

In January 2017, USA regulators ordered a stop-sale of several Fiat Chrysler Automobiles' diesel-powered models, including its Jeep Grand Cherokee, after regulators said it emitted more nitrogen oxide than allowed by law. Daimler hasn't contested the existence of the devices, but has argued that the devices may not be illegal.

The company said it is co-operating with authorities. "Those functions are part of a complex emission control system created to ensure robust emission control in different driving conditions and over the lifetime of a vehicle".

"We don't see any evidence that Daimler was designing software to deliberately cheat on emission testing", he said.

Evercore ISI analyst Arndt Ellinghorst predicted the costs for the required software update for Daimler would be less than 100 million euros ($118 million). "Overall, this outcome should de-risk the stock".