Audi recalls 850000 diesels for emissions update

Audi announces retrofit programme for 850000 diesel cars

According to Der Spiegel, Volkswagen reported in a filing to German authorities that every major German auto manufacturer has been involved in the agreements-VW, Audi, Porsche, BMW and Daimler.

Mercedes-Benz Korea, meanwhile, said Friday that it would offer engine software updates for the diesel vehicles and also cooperate with the related authorities over the inspections. They were under fire after several government studies showed that diesel cars, once promoted as environmentally friendly, frequently pollute much more than advertised. The company said in a statement: "The BMW Group categorically rejects accusations Euro 6 diesel vehicles sold by the company do not provide adequate exhaust gas treatment due to AdBlue tanks that are too small". The German summit will include key figures from all the major vehicle companies, and it is nearly certain that other major auto companies will have to make similar plans for recalling their diesel cars.

Now, BMW has become the first manufacturer to officially react to those allegations, issuing an official statement.

Volkswagen AG's premium brand Audi is starting a voluntary recall of diesel cars, following a similar move by rival Mercedes-Benz as regulatory scrutiny of the engines' hazardous pollution intensifies.

European Union commission spokesman Ricardo Cardoso said on Monday (24 July) that the commission and the German competition authority "have received, indeed, information on this matter".

"The action will take place in close consultation with Germany's Federal Motor Transport Authority", Audi said Friday. It goes on to say that the companies made a decision to avoid expensive larger tanks and instead fit smaller ones that aren't able to clean exhaust gases sufficiently. At this stage, it is not clear how this will happen, but one can assume that the software update will lower toxic nitrogen oxide (NOx) gases which are linked to a range of respiratory diseases, including cancer. Audi states that the exercise will further improve their emissions in real driving conditions beyond the current legal requirements.

Daimler has announced a voluntary recall of more than three million Mercedes-Benz diesel cars and vans across Europe for a software update created to reduce NOx pollution.

"While the investigation hangs over the industry, investors will be wary of those stocks as European carmakers have been hit hefty fines in recent years", said David Madden, market analyst at CMC Markets.

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