Mercedes-Benz parent company Daimer AG announced a $1.5 billion settlement to end emissions cheating probes launched by the U.S. government and state of California, the company announced Monday. Several U.S. agencies and California’s Air Resources Board gave their consent to the settlement Monday, but the U.S. District Court for the District of Columbia will ultimately decide whether to approve the motion.
“By concluding the proceedings, Daimler avoids lengthy court actions with respective legal and financial risks,” the automaker said in its statement. The settlement includes an $875 million civil penalty, as well as a deal to modify the emission program for eligible 2009 through 2016 Mercedes-Benz diesel cars and 2010 through 2016 Freightliner Sprinter vans. While Daimler says it may begin the program by late 2020, it does not detail how it will fix the cars.
This settlement applies specifically to U.S. cars. The company said its emissions control systems in vehicles sold in America are different to those sold in Europe, due to different regulatory requirements. Daimler will spend a further 700 million to settle a class action lawsuit as well. The company says it does not have to buy back vehicles, nor does the settlement include any external compliance monitors.
In the coming weeks, law firm Hagens Berman says it will set up a website with further information about the settlement. If you do own a diesel Mercedes-Benz model between 2009 and 2016, you will be able to see deadlines to submit your claim there.