The German government has told Daimler to recall some 238,000 Mercedes-Benz vehicles in Germany after the automaker was found to be using software to beat diesel emission tests.
Mercedes-Benz C-Class, Vito and GLC diesel models were found to have the issues.
Germany can only order the recall of vehicles from its own country, or of those vehicles issued with a pan-European road-worthiness certification via German authorities.
However, across Europe, some 774,000 Mercedes-Benz vehicles are thought to be affected.
"The government will order 238,000 Daimler vehicles to be immediately recalled Germany-wide because of unauthorised defeat devices," the transport ministry said.
Daimler has said it will work with authorities to remove the software.
This comes after Daimler's chief executive Dieter Zetsche was summoned to answer questions by the ministry after Germany's KBA motor vehicle authority said it found illegal software in one of its models.