German regulator says it discovered new illegal software on Daimler diesels

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Over the weekend, Germany's auto regulator told Daimler that it would have to recall 42,000 Mercedes-Benz diesel vehicles after the group discovered illegal software on the cars that would reduce the effectiveness of the emissions-control system.

Daimler said Sunday night that it would take a one-time charge of hundreds of millions of euros against the upcoming quarter's earnings to deal with the new accusations, but it disputed the government regulator's determination that the software in question was illegal. According to the Wall Street Journal, Daimler plans to formally object to the claims.

The accusation against the German automaker is similar to accusations lobbed against Volkswagen Group starting in 2015. The US Environmental Protection Agency accused VW Group of including illegal software on its diesel vehicles to ensure that the diesels would pass emissions limits imposed by the US. Ultimately, VW Group ended up spending tens of billions of dollars on regulatory fines and vehicle buybacks in the US and the EU.

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