Tuesday, March 9th, 2021
Settlement approved
Diesel dispute ended for Daimler in the USA
Daimler can close the chapter on the diesel affair in the USA. All parties involved give the green light for a negotiated deal. This will cost the Stuttgart company around 1.5 billion euros.
Daimler has settled the legal dispute over excessive diesel emissions in the USA. The judge in charge approved the settlement negotiated with the American regulatory authorities for 1.5 billion dollars, according to court documents. The automaker confirmed that the US federal court for the District of Columbia had approved the settlement, which was negotiated in September. This would end the official procedures in connection with emission control systems for around 250,000 vehicles.
As part of the deal, Daimler agrees to a civil penalty of $ 875 million. Another 550 million dollars will be incurred in offsetting environmental damage and recalling diesel cars. This includes $ 127.5 million that Daimler has to pay to California and that the state can use for environmental projects.
In this context, Daimler spoke of an important step towards legal certainty. As part of the proceedings, the group received no "Notice of Violation" from the EPA or CARB environmental authorities. "In contrast to the settlement agreements of other manufacturers, an external compliance monitor was not required at Daimler." The cost of settling the class action lawsuit by diesel owners was previously reported to be around $ 700 million.
Diesel vehicles have been under increased scrutiny since the Volkswagen emissions scandal in the USA. The Wolfsburg-based company had to pay billions of dollars in fines and compensation for diesel customers for manipulating exhaust emissions. The American judiciary had also temporarily placed the German group under the supervision of a controller. The latter had recently finished his work and certified Volkswagen that it had fulfilled its obligations arising from the settlement.
The Italian-American automaker Fiat Chrysler, which has now merged with the French PSA group to form Stellantis, had reached a settlement with the US authorities in 2019 for $ 800 million to eliminate the charge of using illegal emissions software.
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