German automaker Daimler AG is facing a fine of up to €1 billion for diesel-related violations in Europe, Reuters reported Aug. 9, citing German magazine Der Spiegel.

Germany's auto industry regulator, KBA, allegedly found software in Mercedes-Benz C-Class and E-Class vehicles that manipulates emissions tests, the report said.

The news site said KBA ordered the automaker to recall 280,000 vehicles.

Prosecutors in Stuttgart, Germany, are reportedly considering fines of up to €5,000 per vehicle. The total fine is expected to be between €800 million and €1 billion.

A spokesman for the prosecutor's office said the investigation would not be completed before the end of 2019, Reuters said.

Daimler did not immediately respond to a request for comment by S&P Global Market Intelligence.

On July 24, Daimler reported a €1.24 billion net loss for the second quarter of 2019 following two warnings from the automaker that the recalls over diesel exhaust emissions coupled with other regulatory issues would impact the company's earnings.