Daimler received further administrative order issued by the German Federal Motor Transport Authority

The German Federal Motor Transportation (KBA) has closed the known hearing procedure regarding certain Mercedes-Benz vehicles with OM651 diesel engine with the Euro 5 emissions standard and has issued an administrative order for Europe to the company on Friday afternoon, October 11, 2019. As before, KBA considers the impact of specific calibrations in the vehicle’s engine control software as inadmissible.

To get clarity in a complex matter, Daimler will file an objection against this order as well.

Which model ranges will be part of the recall is still in final clarification. However, we assume that there will be a middle six-digit number of vehicles affected by the recall in Europe, of which 260,000 are known to be vehicles of the predecessor model of the current Mercedes-Benz Sprinter, which is the immediate subject of the recall notice. The production of the vehicles ceased in June 2016 at the latest.

Mercedes-Benz customers will be informed in writing about the next steps if their vehicle is part of the recall and a software update can be installed.
We do not expect any further negative impact on earnings because of this KBA order.

Review

Already in June 2019, KBA issued a recall for specific variants of the model Mercedes-Benz GLK 220 CDI 4MATIC with the Euro 5 emissions standard. In this context, Daimler has already informed that the functionality in question is contained in different production series and announced a review.

In addition, Daimler had presented the functionality in question to KBA last year (May 2018) and since then explained it in detail in further meetings.

What are the next steps?

As said before, the company will file an objection against this order –irrespective thereof Daimler will continue to fully cooperate with the authorities. The company will also clarify with KBA in the next few weeks, which model ranges besides the predecessor model of the current Mercedes-Benz Sprinter must be part of the recall.

The ongoing clarification process with the KBA with respect to functionalities in the engine control system of Mercedes-Benz’ diesel vehicles is in the company’s view well advanced at a higher level, but has not yet been completed.

As at October 2019

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