The KBA issued an initial formal notice to Daimler AG in April 2019, ordering the manufacturer to provide technical documentation for all certification tests conducted on the OM651 and OM626 engine families between 2013 and 2018. [6] Daimler's initial response characterised the toothpick findings as isolated quality-control anomalies and disputed that any systematic or sanctioned manipulation had occurred. This position became increasingly difficult to sustain as prosecutors from the Stuttgart Public Prosecutor's Office, who had opened parallel criminal proceedings in June 2019, obtained and disclosed internal engineering communications that referenced "HVE-12" in the context of pre-certification vehicle preparation procedures. [7]
In November 2020, the KBA issued a mandatory recall order covering approximately 260,000 vehicles in Germany, requiring an over-the-air software update to EGR control parameters and, for vehicles whose EGR hardware showed signs of abnormal wear potentially attributable to the alleged manipulation, a dealer-level hardware inspection. Daimler complied with the recall while continuing to contest the characterisation of the practices involved as wilful regulatory evasion. [5] The €870 million administrative fine, imposed in August 2021 and accepted by Mercedes-Benz Group AG without admission of criminal liability, was structured to include €210 million in disgorged profits attributed to vehicles sold with non-compliant emissions profiles and a €660 million penalty component. [1]
Criminal proceedings against fourteen named engineers and three senior managers remained ongoing as of the end of 2023, with trial dates in Stuttgart set for 2025. Separately, a class-action claim filed in the United Kingdom on behalf of approximately 130,000 affected vehicle owners was certified for trial by the Competition Appeal Tribunal in 2022, drawing comparisons in legal commentary to the UK diesel emissions group litigation arising from Volkswagen's Dieselgate settlement. [9]
Corporate response and internal reforms[edit]
Mercedes-Benz Group AG, following the completion of the KBA investigation, commissioned an independent review by law firm
Gleiss Lutz into its internal compliance and engineering approval processes. The resulting report, a summary of which was published in early 2022, identified deficiencies in the oversight of pre-certification vehicle preparation, including an absence of formal documentation requirements for any physical modifications made to test vehicles prior to submission.
[10] In response, the company announced the creation of a dedicated
Emissions Compliance Review Board with direct reporting lines to the Management Board, mandatory video documentation of all certification vehicle preparations, and the appointment of an independent external emissions compliance monitor for a five-year term. Chief Executive
Ola Källenius stated in a widely circulated open letter that the alleged practices were "incompatible with the values and standards Mercedes-Benz holds itself to" and represented "a serious failure for which the company takes full responsibility within the bounds of the legal proceedings underway."
[2]