Daimler AG will pay approximately $ 1.5 billion under agreements with US authorities to settle diesel emissions proceedings.
The German automaker said Thursday it has reached an agreement with various US authorities to settle civil and environmental claims related to the emission control systems of around 250,000 diesel passenger cars and vans in the United States.
In addition, the company has reached an agreement to settle a class action lawsuit on the same issue.
Daimler expects settlement costs to be around $ 1.5 billion. On top of that, approximately $ 700 million will be spent on settling the class action lawsuit.
“Daimler estimates that further expenditure will amount to around three million euros to meet the requirements of the regulations,” he said.
The automaker said it has enough provisions to cover those costs.
“The company has fully cooperated with the US authorities and continues to do so,” he said.
The US authorities involved in the agreement are the Environmental Protection Agency, the California Air Resources Board, the Environment and Natural Resources Division of the US Department of Justice, the California Attorney General’s Office, and the US Customs and Border Protection.
The agreements, which are subject to the approval of the relevant authorities, will have an impact on cash flow over the next three years, with the main impact expected over the next 12 months, Daimler said.