“With the proposed settlements, the company takes an important step towards legal certainty with respect to various diesel proceedings in the United States,” according to the German automaker.
Daimler’s settlement agreement with U.S. regulators will be entered in Consent Decrees, which will be subject to the final approval of relevant authorities and courts.
Daimler is expecting to incur further expenses to fulfill all the requirements of the settlements, which will have an impact on the Free Cash Flow of its industrial business over the next three years. It will experience the major impact of the settlements within the next 12 months.
The $2.2 billion settlement amount is significantly lesser than the more than $20 billion paid in the U.S. by Volkswagen to settle criminal and civil complaints regarding its unlawful devices that cheat emissions tests.
Daimler’s settlements cover approximately 250,000 passenger cars and vans while Volkswagen’s involved around 600,000 passenger cars.
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