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Daimler reaches $2 billion settlement in US

August 13, 2020

Daimler has reached settlements in the United States totaling $2.2 billion (€1.86 billion) The carmaker faced civil and environmental claims over emissions cheating software in its diesel vehicles.

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The Mercedes logo above a Daimler factor in Stuttgart amid a storm
Image: picture-alliance/dpa/S. Gollnow

German carmaker Daimler on Thursday said it had "reached an agreement in principle" with the US authorities to settle civil and environmental claims over emissions violations.

Under the terms of the deal, Daimler will pay $1.5 billion (€1.27 billion) to US authorities, plus another $700 million to settle a consumer class lawsuit. The Stuttgart-based company, which owns the Mercedes brand, said that "further expenses of a mid three-digit-million'' euros would be needed to fulfill requirements of the settlements.

Read more: Germany's carmakers in for a bumpy ride ahead

The 'dieselgate' scandal

The legal dispute stems from exhaust emissions in around 250,000 Daimler diesel cars and vans that had prompted action from California state environmental and judicial authorities, the US Department of Justice and Customs enforcement.

The settlements had already been backed by the Daimler AG and Mercedes-Benz AG supervisory boards, but were awaiting approval from US authorities.

Like other carmakers caught up in the "dieselgate" scandal, Daimler was accused of hiding the fact that it used illegal software in its diesel vehicles to cheat emissions tests, thereby advertising better emissions than the vehicles actually produced.

dr/dj  (AFP, Reuters, AP)