Daimler AG and its sub-brand Mercedes-Benz USA are to pay a $1.5 billion bill over a case in which Californian authorities alleged the automaker had cheated on emissions tests.
The US Department of Justice (DoJ), Environmental Protection Agency (EPA), and the California attorney general’s office have said that Daimler used “defeat device software” to get around emissions testing and provide more favorable scores than was realistic, CBS News reports.
Mercedes-Benz reportedly sold over 250,00 cars and vans between 2009 and 2016 that used the nefarious devices and didn’t meet state or federal emissions standards.
At present, the fine is waiting to be approved in Washington. If successful, the company will also be required to fix 85% of the cars affected within the next two years. It will also have to fix 85% of the vans affected within three years. Drivers will also be provided with extended warranties on some vehicle parts that may be affected by the repairs.
Mercedes will also be required to conduct emissions tests on the repaired vehicles every year for the next five years to ensure they meet federal regulations.
As part of the agreement, $17.5 million of Daimler AG’s fine will be put towards enforcement of laws that protect the environment.
While the automotive world seems to be focusing on the future of electric vehicles, the fallout of ‘dieselgate’ is still raging on.
Last week, Volkswagen‘s former CEO Martin Winterkorn was ordered by German courts to stand trial on charges of organized commercial fraud over his alleged involvement in the ‘dieselgate’ emissions rigging scandal.
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