Daimler settles its emissions scandal lawsuit for nearly $3 billion

That's on top of the approximately $960 million fine the company paid in Europe last year.


Mercedes-Benz parent Daimler will pay close to $3 billion to settle the US fallout from its diesel emissions scandal. The German automaker said it expects its recent settlement with American authorities, including the Environmental Protection Agency (EPA), Justice Department and California Air Resources Board (CARB), to cost approximately $1.5 billion. It will also pay out about $700 million to settle with owners and a further "three-digit-million EUR amount to fulfill requirements of the settlements.

A spokesperson for CARB told Reuters the settlement "will reach $1.5 billion and affects 250,000 vehicles nationwide." The agency went on to say it will share more details after US agencies file consent decrees in court, which should happen sometime in mid-September.

In a separate settlement to the one announced today, Daimler paid approximately $960 million last year to settle allegations the automaker had sold at least 684,000 vehicles with software that had allowed those cars to cheat on their emissions tests. The cheating reportedly began in 2008 when Diamler started including the software in vehicles ranging from Vito vans to C-class sedans and GLC coupes. Since the start of the scandal, Daimler has recalled about 800,000 cars globally. It has also since stopped selling diesel vehicles in the US. For comparison, Volkswagen’s similar Diselgate scandal ended up costing the automaker $35 billion in fines and settlements.