Daimler hit with recall, but avoids fine
Automaker Daimler’s recall and software fixes for 774,000 Mercedes-Benz cars and vans in Europe will likely cost close to or more than $118 million.
Analyst Marc-Rene Tonn at Warburg Research provided the estimate on Tuesday, adding the direct financial impact will be “limited” because cooperation with authorities should allow Daimler to avoid penalties of up to 5,000 euros ($5,873.20 )per vehicle.
Monday’s recall of 238,000 cars in Germany was ordered by German Transport Minister Andreas Scheuer who said the cars had software that improperly turned off emissions controls.
Daimler confirmed Tuesday the recall is for vehicles in Europe as the engines at issue were not offered in the United States. The company says it may appeal legal aspects of the decision.