The Stuttgart prosecutors' office has confirmed that Daimler employees are being investigated for potential fraud and false advertising charges.
German authorities have reportedly launched an investigation into Daimler emissions practices.
Stuttgart prosecutors launched the inquiry earlier this week, unnamed sources told Bloomberg, coinciding with a report in German newspaper Die Zeit claiming a Daimler employee approached the prosecutors' office with allegations of diesel emissions cheating.
A spokesman for the Stuttgart prosecutors confirmed that Daimler employees are being investigated for potential fraud and false advertising charges. Additional details of the inquiries remain unclear, however.
The German automaker was sued a year ago in the US market for allegedly implementing a device that disables a primary emissions control system in cooler temperatures, allowing nitrogen oxides output to increase. Such provisions are allowed in certain circumstances to help protect the emissions system, though some appear to fall into a legal gray area that is attracting increasing scrutiny.
Daimler has reportedly claimed that its cars have been certified as compliant by both the German motor authority and transport ministry.