-2.1 C
New York City
Friday, September 25, 2020
Home Around-the-World Emission Test Fraud: Mercedes-Benz Maker Charged About $3 Billion

Emission Test Fraud: Mercedes-Benz Maker Charged About $3 Billion

Maker of Mercedes-Benz brand, Daimler, has reached agreements costing nearly $3 billion to settle civil investigations by U.S. regulators and lawsuits from vehicle owners stemming from a long-running probe into software to cheat diesel emissions tests.

The settlements in principle address civil and environmental claims tied to 250,000 U.S. diesel passenger cars and vans in the United States and include claims from the Environmental Protection Agency, Justice Department, California Air Resources Board (CARB) and the California Attorney General’s Office.

The German carmaker said it expects the costs of the settlements with U.S. authorities will total $1.5 billion, settling with owners will cost about $700 million and “further expenses of a mid three-digit-million EUR (euro) amount to fulfill requirements of the settlements.”

A spokesman for CARB confirmed the settlement “will reach $1.5 billion and affects 250,000 vehicles nationwide.” The agency said it would disclose more details after binding consent decrees with the U.S. government agencies are filed with a U.S. district court, currently anticipated for mid-September.

The maker of Mercedes-Benz cars said it expects an impact on its free cash flow over the next three years as a result, with the main impact within the next 12 months.

Daimler said previously it was the subject of a Justice Department criminal investigation but the status of that probe was not addressed Thursday.

Diesel vehicles have come under scrutiny in the United States since Volkswagen admitted in 2015 to installing secret software on 580,000 U.S. vehicles that allowed them to emit up to 40 times legally allowable emissions.

Fiat Chrysler Automobiles NV in 2019 reached a settlement worth about $800 million to resolve claims by regulators and owners that it used illegal software that produced false results on diesel-emissions tests, but still faces an ongoing criminal probe.

In total, Volkswagen agreed to pay more than $25 billion in the United States for claims from owners, environmental regulators, states and dealers. VW also ended sales of diesel passenger vehicles in the United States.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Autonomous Shuttles: Report Reveals Future of Last-mile Mobility

the autonomous mobility industry is tackling part of the last-mile problem that many commuters encounter when using public transportation by replacing large, diesel buses...

Lagos Gas truck Explosion caused by Angry Driver?

Explosion which, on Thursday, rocked Cele Bus Stop, along Grailand, Ajuwon, Lagos state of Nigeria, damaging several vehicles and causing injuries for many, was...

Massilia Motors Assures Of After-Sales Support for Pajero

After a successful 39 years run, and more than 3.3 million global sales, the production of the legendary Mitsubishi Pajero will be stopped by...

Court Opens Criminal Proceedings against Former Volkswagen CEO

A German court has opened proceedings against former Volkswagen CEO Martin Winterkorn, examining whether he is guilty of market manipulation as part of the...
RSS
Follow by Email
YouTube
YouTube
Pinterest
LinkedIn
Instagram
WeChat
error: Content is protected !!