Daimler to Pay Nearly $1.5B to Settle Diesel Scandal in the USA

German auto concern Daimler will pay about $ 1.5 billion to settle the « diesel scandal » with the US authorities, US Deputy Attorney General Jeffrey Rosen told reporters on Monday.

« The total cost to Daimler will be about $ 1.5 billion. This will also serve to deter others who might contemplate violating our pollution laws in the future, » he said.

More than half of that amount, Rosen said, is a $ 875 million administrative fine.

« This is equivalent to $ 3.5 thousand in a fine for every car sold in the United States… As far as I understand, this is the largest fine for violating the law on emissions of automobile gases in terms of one car, » – said Rosen.

In addition, the company will have to « fix » each car at its own expense. This is 250 thousand cars that were sold in the United States in 2009-2016. « According to our estimates, the cost of such reviews for Daimler is close to $ 400 million, » said Rosen.

According to him, the company will be obliged to « compensate for the environmental damage » to the United States by replacing at least 15 old locomotive engines with new eco-friendly models at its own expense. In addition, the manufacturer will have to redesign its internal control systems so that similar violations do not occur in the future.

According to the head of the environmental protection agency Andrew Wheeler, who took part in the press conference, his department experts found that devices and software were installed on a number of cars that determined the operating mode of the car and adjusted the settings for the emission control system. If the car was checked for emission levels, then the systems worked correctly. In normal mode, the restrictions were disabled.

In June 2019, the Bild tabloid reported that the German Federal Automobile Authority (BKA) ordered Daimler to recall 60,000 Mercedes-Benz GLK 220 CDI vehicles « due to unacceptable shutdown equipment » that manipulates the emission system. The concern denied the accusations, but in September the Stuttgart prosecutor’s office fined the concern €870 million for violations related to the « diesel scandal. »

source: bloomberg.com, bild.de

You might also like

Leave a Comment