Daimler reaches deal to settle US diesel emissions claims

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FILE – In this Tuesday, Sept. 10, 2019 file photo Ola Kaellenius, CEO of the car manufacturer Mercedes, stands next to a ‘Vision EQS’ car at the IAA Auto Show in Frankfurt, Germany. On Tuesday, Feb. 11, 2020 Daimler AG, maker of Mercedes-Benz cars, issues fourth-quarter and full year earnings and provides business update at news conference. (AP Photo/Michael Probst, file)

BERLIN (AP) — Daimler AG, the maker of Mercedes-Benz cars, says it has reached an agreement in principle to settle U.S. claims over emissions from its diesel vehicles for over $2.2 billion.

The Stuttgart, Germany-based automaker said late Thursday that the agreement with various U.S. authorities concerns civil and environmental claims involving about 250,000 diesel cars and vans.

The company said the civil cases related to a a consumer class action lawsuit pending before the U.S. District Court for the District of New Jersey.

Daimler AG said in a statement that the settlement will result in costs of about $1.5 billion, while the civil suit will incur a one-off charge of about $700 million. It estimated that “further expenses of a mid three-digit-million” euros would be required to fulfill requirements of the settlements.

Daimler said its board of management and the supervisory boards of Daimler AG and Mercedes-Benz AG approved the proposed settlements, but noted that they are subject to final approval by the relevant authorities and courts.

Like rival Volkswagen and other automakers, Daimler was caught advertising lower emissions for its diesel vehicles than they actually produced.

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