Daimler, the parent company of Mercedes-Benz, has reached a settlement for about $2.8 billion to settle civil and environmental claims about the company’s diesel engine emissions control in about 250,000 vehicles in the United States. The agreement ends cases involving groups like the Environmental Protection Agency, California Air Resources Board, US Department of Justice, US Customs and Border Protection, and a class-action lawsuit.
This decision comes in three sections. The company is paying $1.5 billion to complete the cases with the various governmental organizations. Daimler expects settling the class-action lawsuit to be around $700 million. Finally, the automaker “estimates further expenses of a mid three-digit-million EUR amount to fulfill requirements of the settlements,” according to its statement. Assuming that figure is 500 million euros ($5.9 million at current exchange rates), then this is an outlay of $2.79 billion.
Daimler will release the final amount to settle each section after filing binding consent decrees with the various agencies. This process should be complete by mid-September, Reuters reports.
It’s not currently clear what, if anything, Daimler needs to do to address the Mercedes vehicles on the road in the US with this diesel engine emissions control equipment.
In the wake of Volkswagen’s Dieselgate scandal, the Environmental Protection Agency became much more strict when evaluating diesel vehicles. This forced Mercedes to cancel plans of bringing the C300d 4Matic to the US. After that, the automaker decided not to bother certifying any of its diesel-fueled models in the country.
Daimler already faced its own diesel emissions scandal in Europe. In 2018, the company had to recall 774,000 vehicles in Europe after Germany’s Federal Motor Transport Authority found five software methods of cheating emissions.