Daimler AG, the maker of Mercedes-Benz cars, says it has reached an agreement in principle to settle U.S. claims over emissions from its diesel vehicles for over $2.2 billion.
The Stuttgart, Germany-based automaker said late Thursday that the agreement with various U.S. authorities concerns civil and environmental claims involving about 250,000 diesel cars and vans.
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Daimler AG, the maker of Mercedes-Benz cars, says it has reached an agreement in principle to settle U.S. claims over emissions from its diesel vehicles for over $2.2 billion.
Daimler AG said in a statement that the settlement will result in costs of about $1.5 billion, while the civil suit will incur a one-off charge of about $700 million. It estimated that “further expenses of a mid three-digit-million” euros would be required to fulfill requirements of the settlements.
Ola Kallenius, Chairman of the Board of Management Daimler AG and Mercedes-Benz AG, talks about future innovation of the car maker at the world premiere of the Mercedes-Benz Vision AVTR concept car announcement during the Daimler Keynote before the CES tech show Monday, Jan. 6, 2020, in Las Vegas. (AP PhotoRoss D. Franklin)
Daimler announces the world premiere of the Mercedes-Benz Vision AVTR concept car at the Daimler Keynote along with a sneak peek of the new Avatar 2 movie, background image, before the CES tech show Monday, Jan. 6, 2020, in Las Vegas. (AP PhotoRoss D. Franklin)
Ola Kallenius, Chairman of the Board of Management Daimler AG and Mercedes-Benz AG, talks about future innovation of the car maker at the world premiere of the Mercedes-Benz Vision AVTR concept car announcement during the Daimler Keynote before the CES tech show Monday, Jan. 6, 2020, in Las Vegas. (AP PhotoRoss D. Franklin)
Movie director James Cameron, second from right, who directed movies such as Avatar, talks about the Mercedes-Benz Vision AVTR concept car at the Daimler Keynote as Cameron is joined on stage by Ola Kallenius, right, Chairman of the Board of Management Daimler AG and Mercedes-Benz AG, before the CES tech show Monday, Jan. 6, 2020, in Las Vegas. (AP PhotoRoss D. Franklin)
Ola Kallenius, Chairman of the Board of Management Daimler AG and Mercedes-Benz AG, talks about the world premiere of the Mercedes-Benz Vision AVTR concept car at the Daimler Keynote before the CES tech show Monday, Jan. 6, 2020, in Las Vegas. (AP PhotoRoss D. Franklin)
The company said the civil cases related to a a consumer class action lawsuit pending before the U.S. District Court for the District of New Jersey.
FILE - In this Wednesday, Feb. 6, 2019 file photo the logo of Daimler is photographed on a car in Frankfurt, Germany, Wednesday, Feb. 6, 2019. The maker of Mercedes-Benz luxury cars says its earnings fell by about half last year. (AP PhotoMichael Probst, file)
Daimler AG said in a statement that the settlement will result in costs of about $1.5 billion, while the civil suit will incur a one-off charge of about $700 million. It estimated that “further expenses of a mid three-digit-million” euros would be required to fulfill requirements of the settlements.
Daimler said its board of management and the supervisory boards of Daimler AG and Mercedes-Benz AG approved the proposed settlements, but noted that they are subject to final approval by the relevant authorities and courts.
Like rival Volkswagen and other automakers, Daimler was caught advertising lower emissions for its diesel vehicles than they actually produced.
Ola Kallenius, Chairman of the Board of Management Daimler AG and Mercedes-Benz AG, talks about future innovation of the car maker at the world premiere of the Mercedes-Benz Vision AVTR concept car announcement during the Daimler Keynote before the CES tech show Monday, Jan. 6, 2020, in Las Vegas. (AP PhotoRoss D. Franklin)
Ola Kallenius, Chairman of the Board of Management Daimler AG and Mercedes-Benz AG, talks about future innovation of the car maker at the world premiere of the Mercedes-Benz Vision AVTR concept car announcement during the Daimler Keynote before the CES tech show Monday, Jan. 6, 2020, in Las Vegas. (AP PhotoRoss D. Franklin)
Daimler announces the world premiere of the Mercedes-Benz Vision AVTR concept car at the Daimler Keynote along with a sneak peek of the new Avatar 2 movie, background image, before the CES tech show Monday, Jan. 6, 2020, in Las Vegas. (AP PhotoRoss D. Franklin)
Ola Kallenius, Chairman of the Board of Management Daimler AG and Mercedes-Benz AG, talks about future innovation of the car maker at the world premiere of the Mercedes-Benz Vision AVTR concept car announcement during the Daimler Keynote before the CES tech show Monday, Jan. 6, 2020, in Las Vegas. (AP PhotoRoss D. Franklin)
Movie director James Cameron, second from right, who directed movies such as Avatar, talks about the Mercedes-Benz Vision AVTR concept car at the Daimler Keynote as Cameron is joined on stage by Ola Kallenius, right, Chairman of the Board of Management Daimler AG and Mercedes-Benz AG, before the CES tech show Monday, Jan. 6, 2020, in Las Vegas. (AP PhotoRoss D. Franklin)
Ola Kallenius, Chairman of the Board of Management Daimler AG and Mercedes-Benz AG, talks about the world premiere of the Mercedes-Benz Vision AVTR concept car at the Daimler Keynote before the CES tech show Monday, Jan. 6, 2020, in Las Vegas. (AP PhotoRoss D. Franklin)