Daimler will pay more than $2 billion to settle U.S. diesel-emissions matters in the latest fallout from years of closer regulatory scrutiny on vehicle pollution.
An agreement in principle with authorities including the U.S. Justice Department and Environmental Protection Agency will cost the German automaker roughly $1.5 billion, according to a statement Thursday. The Stuttgart-based company will pay another nearly $700 million to settle class-action litigation brought by consumers.
The pacts resolve issues that arose after U.S. regulators stepped up their examination of diesel emissions in the wake of Volkswagen Group’s cheating scandal that emerged in 2015. The Justice Department asked Daimler to investigate the certification process of its cars the following year.
The agreement with U.S. authorities regards civil and environmental claims related to the emission-control systems of about 250,000 cars and vans in the U.S. Daimler expects to bear hundreds of millions of euros in additional expenses related to fulfilling requirements of the settlements and said the costs will impact its business over the next three years.