Daimler, parent company of Mercedes-Benz, has been fined €870 million ($1.4 billion) by German authorities for selling vehicles which did not fully comply with regulations regarding oxides of nitrogen (NOx) emissions.
It's understood roughly 684,000 diesel vehicles sold in Germany were not compliant with emissions regulations.
In a statement, the company says it will not challenge the ruling from the Stuttgart public prosecutor as it is in the "best interest [of the company] to end the administrative offense proceeding in a timely and comprehensive manner".
According to Daimler the fine will not negatively impact its profit forecasts as it has already made provisions for such a penalty.
The automaker was penalised €4 million ($6.5 million) for "negligent violation of supervisory duties", with the remainder of the fine determined by the company's ongoing profits.
This latest fine is latest in a series handed out by German authorities since the Volkswagen Group's Dieselgate scandal focused attention on NOx emissions from diesel engines.
Last year Volkswagen was fined €1 billion ($1.6 billion), while Audi was given an €800 million ($1.3 billion) penalty. This year, Porsche accepted a €535 million ($865 million) fine for its role in the Dieselgate scheme.