Daimler Will Recall three Million Diesel Cars Across Europe to Fix Emissions
Daimler Recalling Three Million Diesel Cars in Europe
Daimler AG moved to head off a growing crisis over emissions concerns by voluntarily recalling more than three million Mercedes-Benz diesel vehicles in Europe, marking the latest gargle to the technology since Volkswagen AG’s cheating scandal erupted almost two years ago.
The carmaker will extend an ongoing upgrade of 250,000 compacts and vans to almost every modern Mercedes diesel on the road. The plan, which involves a software patch and avoids complicated component fixes, will cost about two hundred twenty million euros ($255 million), the Stuttgart, Germany-based company said Tuesday. The budge comes against a backdrop of the massive fines that beset VW, and as Mercedes proceeds to face investigations in Germany and the U.S.
“This is about managing diesel’s decline as gently as possible and to get a little bit of reprieve,” said Arndt Ellinghorst, a London-based analyst with Evercore ISI. “That’s not going to switch the fundamental direction of the shift in technology.”
Diesel, which powers about half of the cars sold in Europe every year thanks to taxes that make the fuel cheaper at the pump, has been increasingly under attack since Volkswagen admitted to duping regulators in September 2015. With the technology crucial to Daimler’s strategy to meet targets for lower carbon-dioxide emissions, the automaker can ill afford to have diesel further sullied by doubts and allegations. 
Germany’s Transport Ministry, which last week said it’ll check extra Mercedes models for possible emissions violations, said the decision sent a good signal ahead of an Aug. Two national task force meeting on diesel in Berlin. The ministry will shove forward with a review of Mercedes cars announced last week with the KBA motor transport authority, ministry spokesman Sebastian Hille told reporters on Wednesday.
Rapid Rollout
As well as recalling diesels with Euro-5 and -6 emissions standards, the manufacturer also plans a “rapid” rollout of a downright fresh diesel engine family, the carmaker said.
The plan marks a conciliatory step after Daimler vowed to fight accusations of cheating by “ all legal means” following a meeting with government officials in Berlin last week. The crisis has clouded Daimler for months, with hundreds of police officers and prosecutors searching company sites in May. German authorities have been scrutinizing the carmaker for possible emissions cheating involving two engines used by Mercedes, and Daimler also is the subject of a U.S. probe into allegedly excessive diesel emissions.
“This is eventually a proactive stir to put something on the table and a solid attempt at getting out in front of the debate,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler. Daimler’s estimation for the cost of the recall, at about seventy euros per car, is “extraordinarily low” and could rise, he said.
Daimler shares traded 0.Four percent lower at 63.93 euros as of Two:56 p.m. in Frankfurt, bringing the decline so far this year to 9.6 percent.
Diesel Crackdown
Unlike Volkswagen, which admitted it deceived regulators, Daimler says it adhered to regulations that permit vehicles to reduce emissions controls to protect a car’s engine. Still, ongoing concerns about diesel in the aftermath of the VW scandal have prompted the home states of Daimler, BMW AG and Audi to thrust for fixes on older models to cut air pollution.
The emissions crackdown extends beyond Germany, with France’s Energy Ministry earlier this month telling the country would end the sale of gasoline- and diesel-powered vehicles by 2040. Paris, Madrid, Athens and Mexico City have all said they will ban diesel vehicles from their roads by 2025.
One of Daimler’s peers is preempting these stricter rules. Volvo Car Group said this month it will phase out vehicles powered solely by fossil fuels and suggest only hybrid or full-electric motors on every fresh model launched in two thousand nineteen or later. The Swedish carmaker expects to have five fully electrical vehicles in its lineup by two thousand twenty one and make its last full-gasoline or diesel car in about 2025.
Gut Punch
“The Daimler recall is another punch in the gut to the diesel industry, and an extra black mark in terms of public perception, but the fuel isn’t going away,” said Michael Harley, group managing editor for Cox Automotive. “Automakers proceed to believe in a future with diesel technology.”
The recall, which will be free for customers, will take several months, according to Daimler spokesman Matthias Brock. The plan extends a service activity on compact cars and V-Class vans. About forty five percent of smaller cars and seventy five percent of vans have since been upgraded since March. Daimler has informed German authorities about its decision, Brock said. Germany’s Transport Ministry declined to comment on the recall.
“The public debate about diesel engines is creating uncertainty,” Chief Executive Officer Dieter Zetsche said in a statement on Tuesday. “We have therefore determined on extra measures to reassure drivers of diesel cars and to strengthen confidence in diesel technology.”
— With assistance by Birgit Jennen, and Jamie Butters
Daimler Will Recall three Million Diesel Cars Across Europe to Fix Emissions
Daimler Will Recall three Million Diesel Cars Across Europe to Fix Emissions
Daimler Recalling Three Million Diesel Cars in Europe
Daimler AG moved to head off a growing crisis over emissions concerns by voluntarily recalling more than three million Mercedes-Benz diesel vehicles in Europe, marking the latest gargle to the technology since Volkswagen AG’s cheating scandal erupted almost two years ago.
The carmaker will extend an ongoing upgrade of 250,000 compacts and vans to almost every modern Mercedes diesel on the road. The plan, which involves a software patch and avoids elaborate component fixes, will cost about two hundred twenty million euros ($255 million), the Stuttgart, Germany-based company said Tuesday. The budge comes against a backdrop of the massive fines that beset VW, and as Mercedes resumes to face investigations in Germany and the U.S.
“This is about managing diesel’s decline as gently as possible and to get a little bit of reprieve,” said Arndt Ellinghorst, a London-based analyst with Evercore ISI. “That’s not going to switch the fundamental direction of the shift in technology.”
Diesel, which powers about half of the cars sold in Europe every year thanks to taxes that make the fuel cheaper at the pump, has been increasingly under attack since Volkswagen admitted to duping regulators in September 2015. With the technology crucial to Daimler’s strategy to meet targets for lower carbon-dioxide emissions, the automaker can ill afford to have diesel further sullied by doubts and allegations. 
Germany’s Transport Ministry, which last week said it’ll check extra Mercedes models for possible emissions violations, said the decision sent a good signal ahead of an Aug. Two national task force meeting on diesel in Berlin. The ministry will thrust forward with a review of Mercedes cars announced last week with the KBA motor transport authority, ministry spokesman Sebastian Hille told reporters on Wednesday.
Rapid Rollout
As well as recalling diesels with Euro-5 and -6 emissions standards, the manufacturer also plans a “rapid” rollout of a downright fresh diesel engine family, the carmaker said.
The plan marks a conciliatory step after Daimler vowed to fight accusations of cheating by “ all legal means” following a meeting with government officials in Berlin last week. The crisis has clouded Daimler for months, with hundreds of police officers and prosecutors searching company sites in May. German authorities have been scrutinizing the carmaker for possible emissions cheating involving two engines used by Mercedes, and Daimler also is the subject of a U.S. probe into allegedly excessive diesel emissions.
“This is eventually a proactive stir to put something on the table and a solid attempt at getting out in front of the debate,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler. Daimler’s estimation for the cost of the recall, at about seventy euros per car, is “extraordinarily low” and could rise, he said.
Daimler shares traded 0.Four percent lower at 63.93 euros as of Two:56 p.m. in Frankfurt, bringing the decline so far this year to 9.6 percent.
Diesel Crackdown
Unlike Volkswagen, which admitted it deceived regulators, Daimler says it adhered to regulations that permit vehicles to reduce emissions controls to protect a car’s engine. Still, ongoing concerns about diesel in the aftermath of the VW scandal have prompted the home states of Daimler, BMW AG and Audi to shove for fixes on older models to cut air pollution.
The emissions crackdown extends beyond Germany, with France’s Energy Ministry earlier this month telling the country would end the sale of gasoline- and diesel-powered vehicles by 2040. Paris, Madrid, Athens and Mexico City have all said they will ban diesel vehicles from their roads by 2025.
One of Daimler’s peers is preempting these stricter rules. Volvo Car Group said this month it will phase out vehicles powered solely by fossil fuels and suggest only hybrid or full-electric motors on every fresh model launched in two thousand nineteen or later. The Swedish carmaker expects to have five fully electrified vehicles in its lineup by two thousand twenty one and make its last full-gasoline or diesel car in about 2025.
Gut Punch
“The Daimler recall is another punch in the gut to the diesel industry, and an extra black mark in terms of public perception, but the fuel isn’t going away,” said Michael Harley, group managing editor for Cox Automotive. “Automakers proceed to believe in a future with diesel technology.”
The recall, which will be free for customers, will take several months, according to Daimler spokesman Matthias Brock. The plan extends a service activity on compact cars and V-Class vans. About forty five percent of smaller cars and seventy five percent of vans have since been upgraded since March. Daimler has informed German authorities about its decision, Brock said. Germany’s Transport Ministry declined to comment on the recall.
“The public debate about diesel engines is creating uncertainty,” Chief Executive Officer Dieter Zetsche said in a statement on Tuesday. “We have therefore determined on extra measures to reassure drivers of diesel cars and to strengthen confidence in diesel technology.”
— With assistance by Birgit Jennen, and Jamie Butters
Daimler Will Recall three Million Diesel Cars Across Europe to Fix Emissions
Daimler Will Recall three Million Diesel Cars Across Europe to Fix Emissions
Daimler Recalling Three Million Diesel Cars in Europe
Daimler AG moved to head off a growing crisis over emissions concerns by voluntarily recalling more than three million Mercedes-Benz diesel vehicles in Europe, marking the latest deepthroat to the technology since Volkswagen AG’s cheating scandal erupted almost two years ago.
The carmaker will extend an ongoing upgrade of 250,000 compacts and vans to almost every modern Mercedes diesel on the road. The plan, which involves a software patch and avoids complicated component fixes, will cost about two hundred twenty million euros ($255 million), the Stuttgart, Germany-based company said Tuesday. The budge comes against a backdrop of the massive fines that beset VW, and as Mercedes proceeds to face investigations in Germany and the U.S.
“This is about managing diesel’s decline as gently as possible and to get a little bit of reprieve,” said Arndt Ellinghorst, a London-based analyst with Evercore ISI. “That’s not going to switch the fundamental direction of the shift in technology.”
Diesel, which powers about half of the cars sold in Europe every year thanks to taxes that make the fuel cheaper at the pump, has been increasingly under attack since Volkswagen admitted to duping regulators in September 2015. With the technology crucial to Daimler’s strategy to meet targets for lower carbon-dioxide emissions, the automaker can ill afford to have diesel further sullied by doubts and allegations. 
Germany’s Transport Ministry, which last week said it’ll check extra Mercedes models for possible emissions violations, said the decision sent a good signal ahead of an Aug. Two national task force meeting on diesel in Berlin. The ministry will shove forward with a review of Mercedes cars announced last week with the KBA motor transport authority, ministry spokesman Sebastian Hille told reporters on Wednesday.
Rapid Rollout
As well as recalling diesels with Euro-5 and -6 emissions standards, the manufacturer also plans a “rapid” rollout of a entirely fresh diesel engine family, the carmaker said.
The plan marks a conciliatory step after Daimler vowed to fight accusations of cheating by “ all legal means” following a meeting with government officials in Berlin last week. The crisis has clouded Daimler for months, with hundreds of police officers and prosecutors searching company sites in May. German authorities have been scrutinizing the carmaker for possible emissions cheating involving two engines used by Mercedes, and Daimler also is the subject of a U.S. probe into allegedly excessive diesel emissions.
“This is ultimately a proactive budge to put something on the table and a solid attempt at getting out in front of the debate,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler. Daimler’s estimation for the cost of the recall, at about seventy euros per car, is “extraordinarily low” and could rise, he said.
Daimler shares traded 0.Four percent lower at 63.93 euros as of Two:56 p.m. in Frankfurt, bringing the decline so far this year to 9.6 percent.
Diesel Crackdown
Unlike Volkswagen, which admitted it deceived regulators, Daimler says it adhered to regulations that permit vehicles to reduce emissions controls to protect a car’s engine. Still, ongoing concerns about diesel in the aftermath of the VW scandal have prompted the home states of Daimler, BMW AG and Audi to shove for fixes on older models to cut air pollution.
The emissions crackdown extends beyond Germany, with France’s Energy Ministry earlier this month telling the country would end the sale of gasoline- and diesel-powered vehicles by 2040. Paris, Madrid, Athens and Mexico City have all said they will ban diesel vehicles from their roads by 2025.
One of Daimler’s peers is preempting these stricter rules. Volvo Car Group said this month it will phase out vehicles powered solely by fossil fuels and suggest only hybrid or full-electric motors on every fresh model launched in two thousand nineteen or later. The Swedish carmaker expects to have five fully electrified vehicles in its lineup by two thousand twenty one and make its last full-gasoline or diesel car in about 2025.
Gut Punch
“The Daimler recall is another punch in the gut to the diesel industry, and an extra black mark in terms of public perception, but the fuel isn’t going away,” said Michael Harley, group managing editor for Cox Automotive. “Automakers proceed to believe in a future with diesel technology.”
The recall, which will be free for customers, will take several months, according to Daimler spokesman Matthias Brock. The plan extends a service act on compact cars and V-Class vans. About forty five percent of smaller cars and seventy five percent of vans have since been upgraded since March. Daimler has informed German authorities about its decision, Brock said. Germany’s Transport Ministry declined to comment on the recall.
“The public debate about diesel engines is creating uncertainty,” Chief Executive Officer Dieter Zetsche said in a statement on Tuesday. “We have therefore determined on extra measures to reassure drivers of diesel cars and to strengthen confidence in diesel technology.”
— With assistance by Birgit Jennen, and Jamie Butters
Daimler Will Recall three Million Diesel Cars Across Europe to Fix Emissions
Daimler Will Recall three Million Diesel Cars Across Europe to Fix Emissions
Daimler Recalling Three Million Diesel Cars in Europe
Daimler AG moved to head off a growing crisis over emissions concerns by voluntarily recalling more than three million Mercedes-Benz diesel vehicles in Europe, marking the latest deepthroat to the technology since Volkswagen AG’s cheating scandal erupted almost two years ago.
The carmaker will extend an ongoing upgrade of 250,000 compacts and vans to almost every modern Mercedes diesel on the road. The plan, which involves a software patch and avoids elaborate component fixes, will cost about two hundred twenty million euros ($255 million), the Stuttgart, Germany-based company said Tuesday. The stir comes against a backdrop of the massive fines that beset VW, and as Mercedes proceeds to face investigations in Germany and the U.S.
“This is about managing diesel’s decline as gently as possible and to get a little bit of reprieve,” said Arndt Ellinghorst, a London-based analyst with Evercore ISI. “That’s not going to switch the fundamental direction of the shift in technology.”
Diesel, which powers about half of the cars sold in Europe every year thanks to taxes that make the fuel cheaper at the pump, has been increasingly under attack since Volkswagen admitted to duping regulators in September 2015. With the technology crucial to Daimler’s strategy to meet targets for lower carbon-dioxide emissions, the automaker can ill afford to have diesel further sullied by doubts and allegations. 
Germany’s Transport Ministry, which last week said it’ll check extra Mercedes models for possible emissions violations, said the decision sent a good signal ahead of an Aug. Two national task force meeting on diesel in Berlin. The ministry will thrust forward with a review of Mercedes cars announced last week with the KBA motor transport authority, ministry spokesman Sebastian Hille told reporters on Wednesday.
Rapid Rollout
As well as recalling diesels with Euro-5 and -6 emissions standards, the manufacturer also plans a “rapid” rollout of a fully fresh diesel engine family, the carmaker said.
The plan marks a conciliatory step after Daimler vowed to fight accusations of cheating by “ all legal means” following a meeting with government officials in Berlin last week. The crisis has clouded Daimler for months, with hundreds of police officers and prosecutors searching company sites in May. German authorities have been scrutinizing the carmaker for possible emissions cheating involving two engines used by Mercedes, and Daimler also is the subject of a U.S. probe into allegedly excessive diesel emissions.
“This is eventually a proactive stir to put something on the table and a solid attempt at getting out in front of the debate,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler. Daimler’s estimation for the cost of the recall, at about seventy euros per car, is “extraordinarily low” and could rise, he said.
Daimler shares traded 0.Four percent lower at 63.93 euros as of Two:56 p.m. in Frankfurt, bringing the decline so far this year to 9.6 percent.
Diesel Crackdown
Unlike Volkswagen, which admitted it deceived regulators, Daimler says it adhered to regulations that permit vehicles to reduce emissions controls to protect a car’s engine. Still, ongoing concerns about diesel in the aftermath of the VW scandal have prompted the home states of Daimler, BMW AG and Audi to shove for fixes on older models to cut air pollution.
The emissions crackdown extends beyond Germany, with France’s Energy Ministry earlier this month telling the country would end the sale of gasoline- and diesel-powered vehicles by 2040. Paris, Madrid, Athens and Mexico City have all said they will ban diesel vehicles from their roads by 2025.
One of Daimler’s peers is preempting these stricter rules. Volvo Car Group said this month it will phase out vehicles powered solely by fossil fuels and suggest only hybrid or full-electric motors on every fresh model launched in two thousand nineteen or later. The Swedish carmaker expects to have five fully electrical vehicles in its lineup by two thousand twenty one and make its last full-gasoline or diesel car in about 2025.
Gut Punch
“The Daimler recall is another punch in the gut to the diesel industry, and an extra black mark in terms of public perception, but the fuel isn’t going away,” said Michael Harley, group managing editor for Cox Automotive. “Automakers proceed to believe in a future with diesel technology.”
The recall, which will be free for customers, will take several months, according to Daimler spokesman Matthias Brock. The plan extends a service act on compact cars and V-Class vans. About forty five percent of smaller cars and seventy five percent of vans have since been upgraded since March. Daimler has informed German authorities about its decision, Brock said. Germany’s Transport Ministry declined to comment on the recall.
“The public debate about diesel engines is creating uncertainty,” Chief Executive Officer Dieter Zetsche said in a statement on Tuesday. “We have therefore determined on extra measures to reassure drivers of diesel cars and to strengthen confidence in diesel technology.”
— With assistance by Birgit Jennen, and Jamie Butters