Diesel Emissions Cheating – Federal and California Settlement
Daimler AG and its subsidiary Mercedes-Benz USA reached a $1.5 billion agreement with federal and California authorities to end claims that they installed software in cars to cheat emissions tests. Pursuant to a consent decree, Daimler agreed to recall and repair the emissions systems in Mercedes-Benz diesel vehicles sold in the U.S. between 2009 and 2016 and pay $875 million in civil penalties and roughly $70.3 million in other penalties. The company also agreed to extend the warranty period for certain parts in the repaired vehicles, perform projects to mitigate excess ozone-creating nitrogen oxides emitted from the vehicles, and implement new internal audit procedures designed to prevent future emissions cheating. The recall program and federal mitigation project are expected to cost about $436 million. The company also agreed to ay another $110 million to fund mitigation projects in California.
- Misconduct Type
- Enforcement Agency
- Multiple Agencies
- Contracting Party
- Court Type
- Date of Settlement Announcement