By Reuters

WASHINGTON – German automaker Daimler AG said on Tuesday it had dropped plans to seek U.S. approval to sell 2017 Mercedes-Benz US diesel models, but had not decided whether to exit the American passenger diesel market.

“We constantly review our portfolio offerings and make adjustments to meet immediate customer need,” Mercedes-Benz USA spokesman Rob Moran said in an email. “Combined with the increased effort to certify diesel engines in the US, we have put the certification process for diesel passenger cars on hold.”

There has been growing scrutiny of diesel vehicles in the United States since Volkswagen AG admitted in September 2015 to installing secret software on 580,000 U.S. vehicles that allowed them to emit up to 40 times legally allowable emissions.

VW was sentenced in April after pleading guilty in the emissions scandal. In total, VW has agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, states and dealers and offered to buy back about 500,000 polluting US vehicles.

Last month, Daimler said investigations by authorities of diesel emissions and auxiliary emission control devices could lead to significant penalties and recalls.

The Justice Department, EPA, California Air Resources Board, and a prosecutor in Stuttgart, Germany, are investigating emissions of Mercedes-Benz diesel vehicles.

In March, the Stuttgart prosecutor launched an investigation against Daimler employees on suspicion of fraud and misleading advertising tied to vehicle emissions.

Continue reading Daimler drops bid to sell 2017 Mercedes diesels in US

Daimler drops bid to sell 2017 Mercedes diesels in US originally appeared on Autoblog on Wed, 10 May 2017 09:30:00 EDT.