Daimler shares have dipped by over two percent in the wake of the news that the German conglomerate had employed a cheat software engine management system to pass emission tests. Daimler’s spokesperson has denied any wrongdoing stating that the fact that the US authorities hasn’t chosen to issue a notice as yet.
The engine management system is within the legal purview of the European rules under the ‘thermal window’ which allows the engine to alter its parameters when a threat to the health of the engine is detected due to extreme environmental conditions. Even the German authorities are mulling over redrafting of these rules while considering banning of these polluting diesels, the judgement on which is expected to be announced this Thursday.
US investigators, probing the issue, have found that Mercedes-Benz cars run a software that helps it pass the stringent emission tests without adhering to them all the time. This results in excess pollution, as reported by Bild am Sonntag, a German publication. Any such program, if undeclared during compliance, is illegal in the US and will attract hefty penalties.
In their quarterly reports, Daimler have agreed to being subjected to investigations for emission related issues, including raids on Daimler premises in May 2017, and are expecting hefty fines and recalls. Volkswagen, another German carmaker, has had to shell out billions of dollars in fine and recalls after Dieselgate surfaced in 2015. But Mercedes-Benz is positive about the negation of any criminality in the proceedings and is said to be co-operating fully with the authorities.