FRANKFURT: Daimler shares fell following a report that up to a million Daimler cars contained illegal defeat devices as Chief Executive Dieter Zetsche prepared to meet the transport minister on Monday.
German weekly Bild am Sonntag said up to 1 million cars contained software to cheat emissions tests on diesel vehicles.
Carmakers use software to manage exhaust emissions filtering and engine performance. A device can be classified as illegal if exhaust filtering systems are deactivated too early or without good reason.
At 0836 GMT, Daimler shares were trading 1.76 percent lower, at 61.19 euros, underperforming the Stoxx 600 Automobile index which was 0.48 percent lower.
German Transport Minister Andreas Scheuer summoned Zetsche after the country's KBA Motor Vehicle Authority discovered "inadmissible defeat devices" in Mercedes-Benz engines, even as Daimler disputes they were illegal.
Daimler declines to comment on the 1 million vehicles figure, but said it is cooperating fully and transparently with the KBA and Germany's Transport Ministry.
Daimler, like other car manufacturers, uses urea nitrate liquids to neutralize nitrogen oxide emissions in exhaust fumes. However, Germany's road vehicle authority, the KBA, has taken issue with the emission control features amid suspicion they allow vehicles to emit excess pollution without detection.
The emissions scandal has hung over the German car industry since September 2015, when Volkswagen admitted to using software that could tell when a diesel vehicle was being tested and temporarily lower its toxic emissions to pass U.S. regulations.
The "Dieselgate" scandal has cost VW about US$30 billion in fines and other costs.
(Reporting by Edward Taylor; Editing by Adrian Croft)