This is a settlement, to avoid a court battle.
An extra $700 million will be paid to settle a class-action lawsuit.
Daimler, Mercedes-Benz’s parent company, has conceded and agreed to pay a fine and settle an ongoing class-action suit. The issue stems from the discovery of emission testing defeat devices installed on 250,000 diesel vehicles built and sold between 2009 and 2016.
The $1.5 billion settlement includes an $875 million fine for getting caught. On top of the fine, Mercedes-Benz has agreed to settle a class-action lawsuit involving owners to the tune of $700 million. And finally, Daimler has agreed to fix the affected cars and SUVs at no cost to the owners. These repairs could tally up to $400 million on their own.
The bbc.com reports that, at a press conference, head of the US Environmental Protection Agency Andrew Wheeler said: “The message we are sending today is clear: We will enforce the law. If you try to cheat the system and mislead the public, you will be caught. Those who violate public trust in pursuit of profits will forfeit both.”
Back in 2018, Daimler recalled in excess of 700,000 vehicles in Europe for “defeat devices” installed in said diesel vehicles. As we all know, Mercedes-Benz is far from alone when it comes to these types of scandals.