WASHINGTON: Daimler AG will pay $2.2 billion for violating US clean air laws and to resolve claims from 250,000 U.S. vehicle owners, court documents show.
The German automaker and its Mercedes-Benz USA LLC unit disclosed on 13 Augusts it had reached a settlement in principle resolving civil and environmental claims tied to 250,000 US diesel cars and vans after the automaker used software to evade emissions rules.
Daimler said in August expected costs of settlements with US authorities would total $1.5 billion, settling with owners will cost another $700 million and also disclosed “further expenses of a mid three-digit-million EUR amount to fulfill requirements of the settlements.
Deputy Attorney General Jeff Rosen said the settlements, which follow a nearly five-year investigation, will “serve to deter any others who may be tempted to violate our nation’s pollution laws in the future”.
Repairs
In court documents, Daimler agreed to pay 250,000 owners up to $3,290 each to get polluting vehicles repaired and agreed not to oppose paying $83.4 million in attorneys’ fees and expenses for the owners’ lawyers. Owners will get $800 less if a prior owner files a valid claim.
Daimler noted in court papers it denies the allegations “and does not admit any liability. The settlement does not include an external compliance monitor, it added. The German automaker still faces an ongoing criminal back investigation and could face additional US financial penalties.