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Daimler agrees to a US$1.5 billion settlement for Diesel Emission Cheating Case

The major enforcement by the Environmental Protection Agency, the US Department of Justice, and the California Air Resource Board against Daimler has ended with a resolution of US$1.5 billion settlement.

The fine was levied for breaching the Clean Air Act and dodging California State law by adopting deceitful ways of clearing the emission tests and using unlawful defeat devices over 250000 vehicles that were equipped with diesel engines.

The estimated US$1.5 billion settlement as approved by the federal judge in Washington DC, covers around $875 million in civil penalties and approximately $70.3 million under other penalties spectrum. Apart from this, Daimler has also agreed on extending the warranty period for few parts in repaired vehicles to alleviate the excess ozone-creating nitrogen oxides that the vehicles emit.

The company would further devise some new internal audit measures that would shun any chances of future emissions cheating.

The Environment Protection Agency is believed to have discovered these defeat devices in the Daimler vehicles via tests that were conducted after the Volkswagen scandal came into the picture by NVFEL.

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