The 3 billion euros includes a 2.6 billion euros investment announced in February.

Daimler Mercedes-Benz will equip its entire range of diesel cars in Europe with selective catalytic reduction technology and roll out particulate filters for gasoline engines.

Daimler said improvements in engine technology include optimisations of turbocharging, fuel injection and intercooling, as well as the application of new materials which help extend exhaust-gas recirculation treatments at lower operating temperatures.  

(Reporting by Edward Taylor; Editing by Georgina Prodhan)