Mercedes added a new four-cylinder diesel with the launch of the E250 BlueTec.

Facing two lawsuits and a query from both the U.S. Environmental Protection Agency and the Department of Justice Daimler AG has launched an internal investigation into what the government says are “possible indications of irregularities” with the certification of diesels sold by the Smart and Mercedes-Benz brands.

The move comes even as Volkswagen is attempting to push forward with a proposed settlement of its own diesel emissions problems. VW has told a federal judge in California that the company wants to repurchase about 500,000 vehicles sold in the U.S. using software designed to cheat on emissions tests, while also offering owners financial compensation.

Daimler, meanwhile, is already facing two class action lawsuits filed by a Seattle firm on behalf of owners who claim their vehicles are not compliant with U.S. emissions standards. Those suits are based on research performed in Europe.

After the lawsuits were filed, the EPA stepped in and asked Daimler for more information. A subsequent request from the U.S. Justice Department was received on April 15th, said Daimler, adding that it was asked “to review its certification and admissions process related to exhaust emissions in the United States by way of an internal investigation.”

Daimler also offered a diesel in the previous U.S. version of the Smart fortwo.

Daimler sells a number of its BlueTEC diesels in the U.S. through both the Smart and Mercedes-Benz brands, including the Mercedes E250 BlueTEC. Like Volkswagen, it has claimed that its technology permits those vehicles to deliver improved performance and better mileage, as well as lower emissions.

(Volkswagen reaches settlement with EPA, California on diesel cheat. For more, Click Here.)

But the two lawsuits filed by Seattle’s Hagens Berman – the latest submitted to federal court on April 8th – claim Mercedes used a so-called “defeat device” similar to what was used by Volkswagen to detect when a vehicle is undergoing emissions testing and then adjust its engine settings to reduce pollution levels.

“The fact that Mercedes passed the dynamometer test in all tests, but failed the real world test, is suggestive that like VW, Mercedes is implementing a ‘defeat device’,” the law firm said in a complaint filed in the U.S. District Court of New Jersey.

“We consider this class action lawsuit to be unfounded,” the carmaker said in a statement responding to the second lawsuit. “Our position remains unchanged: A component that inadmissibly reduces emissions is not used in Mercedes-Benz vehicles.”

(Click Here for details about the new Honda Accord Hybrid.)

Daimler officials did not have additional comments on the announcement of the Justice Department request.

Industry experts say it is normal for vehicles to produce higher levels of emissions, such as smog-causing oxides of nitrogen, in the real world due to operating conditions and driver behavior. But it would be illegal to use a device – whether hardware or software – meant to specifically lower pollution levels only during testing. There is so far no confirmation Daimler has done so, though Volkswagen has acknowledged using that ploy with both its 2.0-liter and 3.0-liter diesel engines.

Under the settlement submitted to the court of U.S. Judge Charles Breyer in San Francisco, the maker plans to buy back or repair about 500,000 vehicles, while also offering owners “substantial compensation.”

Breyer issued a gag order covering the case as negotiations continue aimed at settlement more than 500 lawsuits filed on behalf of VW diesel owners.

(To see more about the impact new technology will have on Daimler AG, Click Here.)

Separate legal actions have also been launched on behalf of VW dealers and investors.

Don't miss out!
Get Email Alerts
Receive the latest Automotive News in your Inbox!
Invalid email address
Give it a try. You can unsubscribe at any time.