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Mercedes-Benz pays $4.15 billion in settlements to US authorities, diesel owners

The German car company has agreed to pay billions of dollars in settlements related to diesel emissions.


The parent company of Mercedes-Benz has agreed to settle an investigation and lawsuit into diesel emissions cheat software in the US.

An announcement by Daimler – owner of Mercedes-Benz – outlined the settlements to US authorities and those included in the civil lawsuit, totalling almost US$3 billion (AU$4.15B).

The statement said the German car manufacturer had agreed to the settlements after a joint investigation by a number of US state and federal agencies into Mercedes-Benz vehicles, which are understood to have produced higher emissions than claimed.

Settlements with government authorities and Mercedes-Benz owners will still need to be approved by the relevant courts – the last step in finalising the agreements.

In September 2019, Daimler was fined AU$1.4 billion by German authorities for exceeding local emissions regulations in their vehicles.

The settlements come off the back of the Dieselgate scandal, in which Volkswagen Group admitted to cheating diesel emissions tests. It's estimated the company has paid more than AU$46.5B in fines, compensation, and vehicle buybacks.

Earlier this month, four Audi executives were charged by German prosecutors due to their part in overseeing the deception.

In late July 2020, offices across Europe belonging to Fiat-Chrysler were raided by authorities in relation to suspected diesel emissions cheat software.


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Ben Zachariah

Ben Zachariah is an experienced writer and motoring journalist from Melbourne, having worked in the automotive industry for more than two decades. Ben began writing professionally more than 15 years ago and was previously an interstate truck driver. He completed his MBA in Finance in early 2021 and is considered an expert on classic car investment.

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