Daimler, Mercedes-Benz to pay $2.2B to settle emissions charges in the U.S.

Daimler annual press con-Stuttgart-2020
Source: Daimler

Daimler AG (OTCMKTS: DMLRY) and its subsidiary Mercedes-Benz USA agreed to pay a total of approximately $2.2 billion to settle allegations that it sold passenger cars and vans in the United States that were equipped with a control system that cheats emission tests.

According to the German automakers, the sum included roughly $1.5 billion to resolve the civil and environmental charges brought by U.S. regulators and around $700 million to settle a consumer class action, which is pending before U.S. District Court for the District of New Jersey.

The U.S. regulators involved in the settlement included the Environmental Protection Agency (EPA), the California Air Resources Board (CARB), the Environment and Natural Resources Division of the U.S. Department of Justice (DOJ), the California Attorney General’s Office, and the U.S. Customs and Border Protection.

Daimler cooperated with U.S. regulators in their investigation into the German automaker’s alleged wrongdoings.

“A step towards legal certainty” for Daimler and Mercedes-Benz

In a statement, Daimler said its Board of Management and the Supervisory Board of Mercedes-Benz weighed all aspects of the settlements. They decided to approve it as they find it to be in the best interest of the company.