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Daimler confirms German agency order over 'impermissible' devices in diesel cars

Daimler AG has confirmed it received an order from German transport authority KBA, which is investigating devices the company used in its Mercedes-Benz Vito 1.6l Diesel Euro 6 car engines.

"We have received an administrative order from the KBA, that certain calibrations of specified functionalities in the Mercedes-Benz Vito are impermissible. We are going to defend ourselves against this order," a Daimler spokesperson told S&P Global Market Intelligence in an email.

The German watchdog agency has reportedly discovered five illegal switch-off devices being used in those diesel cars, according to a Reuters report, citing an article in the German newspaper Bild am Sonntag.

The KBA is investigating the use of emissions control devices in Daimler's diesel car fleet of around 1 million vehicles. The devices allow vehicles to release excessive pollution without being detected, according to the Reuters report.

"We are cooperating fully and openly with the department of transportation and the KBA and will have another meeting with the secretary of transport on Monday in Berlin," the Daimler spokesperson said.

In early February, U.S. senators called on the Justice Department to investigate the use of illegal software that may have helped the automaker's diesel cars pass emissions tests, Reuters reported, citing a separate report from Bild am Sontag.

German auto giants Volkswagen AG, Bayerische Motoren Werke AG and Daimler are facing repercussions against diesel technology after Volkswagen conceded to cheating U.S. emissions tests in 2015, Reuters reported.