Daimler will pay $1. 5 billion on accusations of U. S. emissions fraud. But it’s not the first time

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German automaker Daimler, owner of Mercedes-Benz, agreed to pay $1. 5 billion (1. 2 billion pounds) to claims through the U. S. government that he designed his diesel cars to cheat on air pollutant testing.

The corporation has been investigated for installing software to evade emissions on 250,000 Mercedes cars and vans.

U. S. officials said they hoped the fine would deter long-term misconduct.

Daimler said the agreement was an “important step” towards resolving diesel procedures, but denied the allegations.

“In resolving these proceedings, Daimler avoids lengthy trials with their respective legal and monetary risks,” the corporation said.

In addition to the $1. 5 billion agreement with U. S. authorities, Daimler said he had agreed to pay $700 million to resolve a claim for elegance filed by the owners.

He also revealed “other expenses of an average of 3 million euros to comply with the regulations. “

The agreements, which Daimler said were finalized last month, conclude an investigation that the United States introduced in 2016 after “deactivation devices” were discovered through testing.

Authorities said an $875 million fine included in the $1. 5 billion deal with the government is the second-largest civil penalty the United States has imposed on its Clean Air Act and the largest if measured through a vehicle.

Daimler also agreed to repair the affected cars, which were sold between 2009 and 2016, free of charge to their owners. Officials said the value of the commitment is around $400 million.

At a press conference Monday, Andrew Wheeler, director of the U. S. Environmental Protection Agency, said: “The message we’re sending today is clear: we’re going to comply with the law.

“If you try to deceive the formula and deceive the public, you will be caught. Those who violate public confidence in profit-seeking will lose both. “

Sanctions are the latest in a large-scale scandal overshadowing the auto industry since 2015, when Volkswagen admitted to having secret software in cars sold in the United States.

The formula allowed cars to emit up to 40 times the legally permitted emissions and evade screening.

Volkswagen later admitted that the devices affected more than 11 million cars worldwide. The company has more than $20 billion in claims in the United States alone.

But research temporarily expanded to reach other companies, adding Ford, Mitsubishi and Nissan.

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Lawsuit alleges defeat in Nissan gas cars

Volkswagen: the scandal explained

In 2018, Daimler recalled more than 700,000 cars in Europe that had “deactivation devices” installed. BMW and Porsche have also recalled the issue.

Fiat Chrysler in Europe was raided this summer for it. The company agreed to an estimated $800 million settlement for a civil litigation in the United States in January.

Daimler stated that U. S. regulation involved cars that were sold in the same configurations in Europe.

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