Mercedes Will Pay Over $2 Billion To Settle Emissions Cases

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250,000 cars and vans in the US were implicated.

Volkswagen is still trying to shake off the repercussions of the highly publicized Dieselgate scandal, whereby some of its vehicles were found to be way over the emissions limit in real-world driving. Following this, Mercedes-Benz came under fire for diesels which emitted more pollutants than required by law.

Clearly, Mercedes hasn't been able to escape these allegations completely as Daimler now announced that over $2 billion will be spent on settling the US diesel settlement costs, including both civil and environmental claims against it. Approximately 250,000 diesel passenger cars and vans in the United States were implicated, including prior iterations of the C-Class, E-Class, and S-Class.

Mercedes-Benz
Mercedes-Benz
Mercedes-Benz

The statement said that "with the proposed settlements, the company takes an important step towards legal certainty with respect to various diesel proceedings in the United States." It further went on to state that the consumer class action settlement will be sent to the US District Court for the District of New Jersey where it will await approval.

Earlier this year, over 200 investors sued Daimler for an amount totaling $1 billion for damages resulting from the fact that cheating devices in its cars were not disclosed. Daimler anticipates an impact on the industrial business's Free Cash Flow over the next three years and particularly over the next year.

2015-2018 Mercedes-Benz C-Class Sedan Front View Driving Mercedes-Benz
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Daimler and Volkswagen aren't the first companies to take a financial hit following the use of cheat devices; Fiat Chrysler Automobiles also came under fire for its EcoDiesel engine used in models like the Jeep Grand Cherokee.

Daimler's latest move doesn't do much to boost the reputation of the diesel engine, which has gradually fallen out of favor as gasoline models have become more efficient and hybrids/EVs have become increasingly popular. Let's hope it's the last emissions scandal to make headlines for a while.

2015-2018 Mercedes-Benz C-Class Sedan Engine Mercedes-Benz
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