BERLIN- Germany’s Transport Ministry has said that 774,000 Mercedes-Benz vehicles in Europe have been found to contain unauthorised software defeat devices and ordered Daimler to recall more than 200,000 cars in Germany.

The ministry said Mercedes-Benz C-Class and Vito models with diesel engines and a sports utility variant of the sedan, known as the GLC, were the main cars found to be at fault.

The ministry statement said, “The government will order 238,000 Daimler vehicles to be immediately recalled Germany-wide because of unauthorised defeat devices.”

Germany can only recall the vehicles in their own country but they can within the pan-European road-worthiness certification through German authorities.

The ministry added that Daimler will cooperate with the authorities. Chief Executive Officer (CEO) of Daimler Dieter Zetsche said on Monday that have found a technical solution for updating the software on its vehicles. He added that because of this they expect to avoid a fine from the government.

Analyst from Evercore ISI Arndt Ellinghorst predicted that Damiler software will cost up to $118 million he said,

“We don’t see any evidence that Daimler was designing software to deliberately cheat on emission testing,” he said. “Overall, this outcome should de-risk the stock.”

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