Mercedes-Benz Parent Company Daimler Fined $1 Billion For Diesel Rule Violations

Daimler Fined $1 Billion For Diesel Rule Violations

The fine comes out to 870 million euros.

While news emerged about Volkswagen executives facing charges earlier today, Daimler AG also faced its own troubles. German prosecutors announced Tuesday that Daimler will pay a $957 million fine — or 870 million euros — for its part in breaking diesel emissions regulations.

For its part, the company which manufactures Mercedes-Benz cars and trucks said it would not appeal the decision. Furthermore, its earning forecast remains unchanged.

Mercedes-Benz parent company Daimler was fined nearly $1 billion for its diesel emissions violations Tuesday. [Photo: Daimler AG]

According to the company’s statement, “It is in the company’s best interest to end the administrative offence proceeding in a timely and comprehensive manner and thereby conclude this matter.” This decision will clear up some of the outstanding issues surrounding Daimler’s involvement in emissions cheating moving forward. As automakers walk away from diesel development, Mercedes-Benz and Volkswagen are both heavily investing in electric cars.

Daimler’s cheating with its diesel emissions reportedly started in 2008. According to officials, it started with cars like the diesel C-Class sedan, and involved software tweaks to the emissions filtering system to pass during testing. On the road, the system would loosen up its restrictions. That would give the driver better performance, but also increased emissions, particularly when it come to nitrous oxides. Volkswagen fitted a similar system to its cars, and has paid nearly $30 billion in penalties so far.

The U.S. Department of Justice is also investigating Daimler, though the outcome remains uncertain. Last year, Mercedes-Benz recalled some 700,000 affected vehicles globally to address emissions issues. Unlike Volkswagen, Mercedes-Benz executives have not yet been charged by prosecutors for their role in Daimler’s emissions cheating scheme.