Daimler AG aims to head off a growing crisis over potential emissions cheating by voluntarily recalling more than 3 million Mercedes-Benz diesel vehicles in Europe.
The company will extend an ongoing upgrade of about 250,000 compact cars and vans to nearly every modern Mercedes diesel on the road. The plan, which involves a software patch and avoids complex component fixes, will cost the automaker about €220 million (about ¥28 billion), the Stuttgart, Germany-based company said in a statement on Tuesday. If accepted by officials, it could help Daimler avoid the massive penalties that beset Volkswagen AG.
"This is finally a proactive move 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 €70 per car, is "extraordinarily low" and could rise, he said.