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Daimler AG to Pay $2.2 Billion for Cheating Settlements of Diesel Emissions

FILE PHOTO: An employee of German car manufacturer Mercedes Benz installs the brand's characteristic star on a Mercedes S-Class (S-Klasse) at a production line at the Mercedes Benz factory in Sindelfingen, Germany, January 24, 2018. REUTERS/Ralph Orlowski FOR EDITORIAL USE ONLY/File Photo

Daimler AG will pay $2.2 billion for resolving the US government’s diesel emissions cheating investigation and claims from 250,000 US vehicle owners, as per the court documents.

On 13 August, the German automaker and its Mercedes-Benz USA LLC unit disclosed that it had reached on a settlement for resolving civil and environmental claims tied to 250,000 US diesel cars and vans owners, after using software for evading emissions rules

Daimler said its August expected costs of settlements with US authorities would amount for a total of $1.5 billion and an additional cost of $700 million for settling up with the vehicle owners. The company had also disclosed further expenses of a mid-three-digit-million euro amount for fulfilling requirements of the settlements.

Jeff Rosen, Deputy Attorney General, said that the settlement, which follows an investigation period of nearly five years, will “serve to deter any others who may be tempted to violate our nation’s pollution laws in the future.”

The company had agreed to pay 250,000 vehicle owners $3,290 each for getting polluting vehicles repaired and decided not to oppose paying $83.4 million attorneys fees and expenses for the owners’ lawyers. The vehicle owners will get $800 less if a prior owner files a valid claim.

The settlement includes $875 million as a civil penalty levied under the Clean Air Act and $546 million for the repairing cost of polluting vehicles and offset excess emissions, court papers show. Daimler will pay a total of $285.6 million to California.

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