Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Daimler to pay $2.2 billion in diesel emissions cheating settlements

share with twitter share with LinkedIn share with facebook
09/15/2020 | 01:53am EDT
The spread of the coronavirus disease (COVID-19) in Germany

(This September 14 story has been refiled to restore dropped words in lead)

By David Shepardson

Daimler AG will pay $2.2 billion (1.71 billion pounds) to resolve a U.S. government diesel emissions cheating investigation and claims from 250,000 U.S. vehicle owners, court documents show.

The German automaker and its Mercedes-Benz USA LLC unit disclosed on Aug. 13 it had reached a settlement in principle resolving civil and environmental claims tied to 250,000 U.S. diesel cars and vans after the automaker used software to evade emissions rules.

Daimler said in August expected costs of settlements with U.S. 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 (euro) 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."

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 U.S. financial penalties.

The settlements require Daimler to address the vehicles' excess emissions as part of binding consent decrees. Daimler will issue recalls and extended warranties but is not required to buy back vehicles unless it is unable to offer an emissions fix within a required timetable.

The Justice Department said Daimler failed to disclose at least 16 auxiliary emissions control devices, the government alleged, allowing "vehicles to perform in a variety of consumer-desirable ways, including allowing for fewer (diesel exhaust fluid) tank refills (and) better fuel mileage."

The settlement includes an $875 million civil penalty levied under the Clean Air Act and $546 million to fix the polluting vehicles and offset excess emissions, court papers show. Daimler will pay California $285.6 million in total.

Diesel vehicles have come under scrutiny in the United States since Volkswagen AG admitted in September 2015 to installing secret software on 580,000 U.S. vehicles that allowed them to emit up to 40 times legally allowable emissions.

In September 2019, Daimler in Germany agreed to pay a fine of 870 million euros (777.97 million pounds) for breaking diesel emissions regulations.

Both Volkswagen and Daimler have halted sales of U.S. passenger diesel vehicles.

Fiat Chrysler Automobiles NV in 2019 reached a settlement worth about $800 million to resolve claims by regulators and owners that it used illegal software that produced false results on diesel-emissions tests.

Fiat Chrysler said in July it was in talks to resolve an ongoing Justice Department criminal probe.

(Reporting by David Shepardson; Editing by Jonathan Oatis, Marguerita Choy and Lisa Shumaker)


Stocks mentioned in the article
ChangeLast1st jan.
DAIMLER AG 0.40% 44.4 Delayed Quote.-10.07%
FIAT CHRYSLER AUTOMOBILES N.V. -0.21% 10.542 Delayed Quote.-20.10%
VOLKSWAGEN AG -1.45% 125.1 Delayed Quote.-29.02%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
05:51pFrench deficit seen at 11.3% of output in 2020 - minister
RE
05:20pAPI AMERICAN PETROLEUM INSTITUTE : statement on administration memorandum directing an economic analysis of the impact of a federal ban on hydraulic fracturing
PU
05:10pBANCO DE LA REPUBLICA DE COLOMBIA : Juan José Echavarría, informed the Board of Directors of his intention to resign from his position as Governor after completing the four-year period
PU
05:05pMOST COMPREHENSIVE REPORT TO DATE ON WOMEN'S PARTICIPATION IN POLITICAL LIFE IN IRAQ : Challenges and ways to overcome them
PU
04:35pThe long and complex road towards an EU Global Human Rights Sanctions Regime
PU
04:35pThe long and complex road towards an EU Global Human Rights Sanctions Regime
PU
04:35pDELEGATION OF EUROPEAN UNION TO EGYPT : The long and complex road towards an EU Global Human Rights Sanctions Regime
PU
03:32pPortugal reimposes partial lockdown in most of the country
RE
03:25pWORLD BANK : Remarks by Axel van Trotsenburg, World Bank Managing Director, Operations at the 95th Foundation Training Programme at Lal Bahadur Shastri National Academy of Administration
PU
03:22pUK extends 80% wage subsidies as England goes back into lockdown
RE
Latest news "Economy & Forex"