Daimler to pay $2.2 billion to settle U.S. diesel issues

Marco Green
August 14, 2020

The German automaker said it expects its recent settlement with American authorities, including the Environmental Protection Agency (EPA), Justice Department and California Air Resources Board (CARB), to cost approximately $1.5 billion. A further $US700 ($977) million would be spent to settle a class-action lawsuit against it, including attorneys' fees.

The pacts resolve issues that arose after USA regulators stepped up their examination of diesel emissions in the wake of Volkswagen AG's cheating scandal that emerged in 2015.

As for the status of the investigations, Daimler previously said that it was the subject of a Justice Department criminal probe on the matter, but the status of that investigation was not mentioned in yesterday's announcement. These include the class action settlement that is approximately priced at United States dollars 700 million, the court's anticipated award of attorneys' fees and costs, and further three-digit million expenses to fulfill other settlement requirements.

Daimler AG, the maker of Mercedes-Benz cars, says it has reached an agreement in principle to settle US claims over emissions from its diesel vehicles for over $2.2 billion. Daimler had insisted that its emissions technology complied with the rules and that its case was different from the large-scale cheating committed by its rival. There were also more cars involved, with about 600,000 VW diesels vs 250,000 Daimler diesels.

Daimler warned in its annual report published in February that German motor industry watchdog KBA is likely to rule that additional vehicles are "equipped with impermissible defeat devices".

Also, Fiat Chrysler Automobiles past year reached a settlement worth about $800 million to resolve claims by regulators and owners that it used illegal software. In the coming weeks, the authorities will then lodge the consent decrees with a U.S. District Court for ultimate approval.

Other reports by Click Lancashire

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