The Bavarian carmaker has denied using defeat devices, saying it was a problem of incorrect, unsuitable software in the 750d and M550d models. A class-action lawsuit has been launched in the United States.
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The Federal Motor Transport Authority (KBA) ordered the recall for more than 11,000 of the luxury BMW models on Friday.
Federal Transport Minister Andreas Scheuer said "inadmissible defeat devices are to be removed" from the engine controls.
To date, BMW has denied involvement in the diesel emissions scandal that has hit German competitor VW since 2015 when the Wolfsburg auto giant admitted to test-cheating software in millions of its vehicles.
The recall affecting the BMW 750 3.0 Diesel Euro 6 and BMW M550 3.0 Diesel Euro 6 models follows an admission by the Munich carmaker in February that the vehicles released more harmful emissions on the road than in the laboratory testing station.
Raid and a lawsuit
Prosecutors raided BMW headquarters earlier in March saying they had launched a preliminary investigation into suspected diesel-emission fraud, expressing reason to believe 11,400 cars could have been equipped with the "inadmissible defeat devices."
On Tuesday, US law firm Hagens Berman filed a class-action suit accusing BMW of colluding with Robert Bosch GmbH and Robert Bosch LLC to create manipulative software that would mask illegally high levels of pollution while undergoing emissions testing. It alleges the diesel SUV and 4-door sedan emit up to 27 times more nitrogen oxide than the legal standard.
"BMW's X5 model, built between 2009 and 2013, and the BMW 330d model, which was sold between 2009–2011, emit levels of nitrogen oxide many times higher than their gasoline counterparts," the suit alleges.
"At these levels, these cars aren't just dirty – they don't meet standards to be legally driven on US streets and no one would have bought these cars if BMW had told the truth," said Hagens Berman's Steve Berman. "BMW chose to join the likes of Volkswagen and so many others, to build an illegal emissions-cheating system."
BMW denied the charge and a spokesman said, "As a matter of principle, BMW Group vehicles are not manipulated and comply with all respective legal requirements."
Dieselgate: A timeline
VW's emissions scandal plunged the automaker into its deepest crisis ever. It brought with it everlasting damage to VW's reputation and massive fees and penalties — not to mention compensation claims from car owners.
Image: picture-alliance/dpa/J. Stratenschulte
The disaster unfolds — September 2015
About two weeks after Volkswagen admitted behind closed doors to US environmental regulators that it had installed cheating software in some 11 million of its diesel vehicles worldwide, the Environmental Protection Agency shared that information with the public. It was September 18, 2015. The ensuing crisis would eventually take a few unexpected turns.
Image: picture-alliance/dpa/O. Spata
The boss must go, long live the boss — September 2015
Volkswagen's then-CEO Martin Winterkorn (above) had little choice but to step down several days after news of the scandal broke. In September 2015, he tendered his resignation, but retained his other posts within the Volkswagen Group. Winterkorn's successor was Matthias Müller. Until taking the reins at VW, Müller had been the chairman at Porsche, a VW subsidiary.
Image: picture-alliance/Sven Simon
Raiding headquarters — October 2015
Regulators in the US weren't the only ones investigating VW. Authorities in Lower Saxony, the German state in which VW is based, were also scrutinizing the company. On October 8 2015, state prosecutors raided VW's headquarters along with several other corporate locations.
Image: picture-alliance/dpa/P. Steffen
Hell breaks loose — January 2016
On January 4, 2016, the US government filed a lawsuit against VW in Detroit, accusing the German automaker of fraud and violations of American climate protection regulations. The lawsuit sought up to $46 billion for violations of the Clean Air Act.
Image: picture-alliance/dpa/A. Burgi
Quit or forced out? — March 2016
In March 2016, the head of VW in the US, Michael Horn, resigned. In the initial days and weeks after the scandal broke, he was the one US authorities turned to for information. He issued an official apology on behalf of the automaker, asking for the public's forgiveness.
Image: Getty Images/C. Somodevilla
Settlement — October 2016
On October 25 2016, a US judge approved a final settlement that would have VW pay $15.3 billion. In addition, affected cars would be retrofitted with better, non-deceptive hardware and software, or else VW would buy them back completely from customers.
Image: picture-alliance/dpa/P. Pleul
Imitators — July 2017
When dieselgate first emerged in 2015, analysts said it was likely other car makers were also cheating tests. But it wasn't until 2017 that other companies were targeted in probes. In July, German authorities launched investigations into luxury car makers Porsche and Daimler for allegedly cheating emissions tests. Others, such as Audi and Chrysler, have also been hit by similar allegations.
Image: picture-alliance/dpa/F. Kraufmann
Public still supportive — December 2017
Despite dieselgate, VW has managed to keep the emissions scandal from utterly tarnishing its image. According to several polls, between 55 to 67 percent of Germans continue to trust the automaker. In the US, polls show that roughly 50 percent still believe the German company produces worthwhile vehicles.
Image: picture-alliance/dpa/C. Klose
Fuming over monkeys — January 2018
In late January, however, VW suffered another heavy blow over reports that the company experimented on monkeys and made the animals inhale diesel fumes. To make matters worse, a separate experiment that had humans inhale relatively harmless nitrogen dioxide was revealed at the same time. Some media wrongly interpreted this to mean humans were also inhaling toxic fumes.
Image: picture-alliance/dpa/F. Gentsch
Canadian court demands millions — January 2020
Years after the scandal that caused Volkswagen to pay CAN$2.4 billion (US$1.83 billion), a court in Toronto order a further fine of CAN$196.5 million. Volkswagen pleaded guilty of violating in environmental laws. Prosecutor Tom Lemon noted that the fine was "26 times the highest fine ever for a Canadian environmental offence."
Image: picture-alliance/dpa/R. Knipping
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Faulty use of software
The company maintains that it is a faulty use of software rather than targeted manipulation.
According to BMW, the software program for the X5 and X6 SUV models, which use the same engines, had been mistakenly used on two BMW5 and BMW7 series cars from 2012 until 2017. The software was not suitable for these cars and did not correctly clean the exhausts, the company said, adding that, "A correctly programmed software subroutine was mistakenly allocated to incompatible models."
Once approved by the authorities, corrected software is to be provided for the vehicles affected, according to BMW.
Volkswagen was found to have built "defeat devices" to alter results during tests into more than 11 million cars worldwide in the so-called "dieselgate" scandal.