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Daimler and DOJ Settle Emissions Cheating Case

Volkswagen

September 18, 2020

DOJ prosecutors and Daimler AG have agreed on a settlement in the emissions cheating scandal that came to light in 2016, which also involved Volkswagen. The company will pay $1.5 billion, which cleans the slate in respect to Daimler’s Clean Air Act violations. It will pay $945 million in penalties, and recall and repair every Mercedes-Benz diesel vehicle sold in the U.S. with a defeat device, the gadget that caused the scandal. The devices were developed to ensure tests in laboratories would show that diesel vehicles conformed to U.S. laws, but in actual driving situations, NOx levels were far higher. The devices were discovered by the EPA and the California Air Resources Board. Volkswagen was previously ordered to pay up to $14.7 billion to resolve Clean Air Act violation charges. Daimler must remove the devices and update vehicle software to bring cars in line with environmental laws. The settlement requires that 85 percent of Mercedes-Benz passenger cars have to be recalled and fixed within two years, and 85 percent of Sprinter vans must be repaired within three, with “stiff penalties” for failing.

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