Mercedes-Benz parent Daimler AG has launched an internal investigation into BlueTEC diesel engines after a request from the U.S. Department of Justice. The move comes after the EPA formally requested information on diesel engine emissions, and after a class action lawsuit was filed against the automaker alleging greater-than-advertised nitrogen oxide emissions and the presence of defeat devices in diesel models.

The suit filed in February by Seattle-based law firm Hagens Berman claims that BlueTEC diesels' nitrogen oxide reduction system deactivates when the outside temperature drops below 50 degrees Fahrenheit, allowing the engines to produce pollutants at rates 19 to 65 times higher than permitted by federal law.

"Mercedes labeled its BlueTEC vehicles as ‘earth friendly,’ selling consumers the false notion that these diesel cars were less harmful to the environment, but Mercedes never divulged to consumers that BlueTEC diesels pollute at illegal levels when driven at lower temperatures and that its 'champion of the environment' mantra was a sham," Hagens Berman managing partner Steve Berman said in a statement. "It appears that Mercedes has been caught in a similar scheme as Volkswagen and programmed these BlueTEC vehicles to pollute, all the while reaping profits from those who have fallen victim to its aggressive and deceptive eco-conscious branding."

The Hagens Berman complaint alleges that nitrogen oxide reduction systems in BlueTEC diesels deactivate at temperatures below 50F. Mercedes-Benz

The suit seeks a recall, a replacement program and compensation for owners of 14 different diesel models including the ML-Class, GL-Class, E-Class, S-Class, R-Class, GLE-Class and the Sprinter. The law firm cites instrumented testing of certain diesel vehicles carried out by the Dutch government in the complaint, and also highlights Mercedes' use of the words "clean diesel" in marketing. The suit alleges that the BlueTEC engines "are affected by the unlawful, unfair, deceptive, and otherwise defective emission controls."

"Mercedes never disclosed to consumers that Mercedes diesels with BlueTEC engines may be 'clean' diesels when it is warm, but are 'dirty' diesels when it is not," the complaint states in part, in unusually sensational language. "Mercedes never disclosed that, when the temperature drops below 50 degrees, it prioritizes engine power and profits over people."

Mercedes-Benz has denied any of its diesel vehicles produce higher-than-permitted emissions and has stated the lawsuit itself is without merit, but Reuters now reports the automaker has hired auditing firm Deloitte Touche Tohmatsu to carry out an internal investigation.

Daimler shares took a 5 percent tumble at the end of the third week of April on news of the launch of the probe, Reuters reported earlier.

"Daimler is cooperating fully with the authorities," the automaker said in a statement. "Daimler will consequently investigate possible indications of irregularities and of course take all necessary actions."

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