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Business Maverick: Mercedes-Benz Settles U.S Diesel Cheating Case for $1.5 Billion

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German automaker Daimler AG and its American subsidiary Mercedes-Benz USA LLC agreed Monday to settle alleged violations of U.S. and California emission rules totaling $1.5 billion in penalties and other costs, according to an agreement filed in federal court.

The Environmental Protection Agency and Department of Justice filed the proposed settlement in U.S. District Court for the District of Columbia, in the latest instance of U.S. regulators bringing down the hammer on alleged emissions cheating in the auto industry.

“When something ends up costing a manufacturer $1.5 billion, we would anticipate that has deterrent effects on other automakers as well,” Deputy U.S. Attorney General Jeffrey Rosen said during a virtual press conference on Monday afternoon with EPA Administrator Andrew Wheeler. The U.S. government’s complaint alleges Daimler failed to disclose emissions devices to U.S. regulators in its Mercedes Sprinter vans and various passenger vehicles from 2009 to 2016. The devices caused vehicles’ emissions control systems to perform one way during testing, and another way when consumers were behind the wheel.

 

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