Daimler to pay $1.5 billion to settle U.S. diesel cases

BERLIN (Reuters) - Daimler has reached an agreement to settle U.S. proceedings relating to investigations into software to cheat diesel emissions tests that will result in costs of about $1.5 billion, the German carmaker said on Thursday. The maker of Mercedes-Benz cars said it expects an impact on its free cash flow over the next three years as a result, with the main impact within the next 12 months

Reuters August 14, 2020 00:08:05 IST
Daimler to pay $1.5 billion to settle U.S. diesel cases

Daimler to pay 15 billion to settle US diesel cases

BERLIN (Reuters) - Daimler has reached an agreement to settle U.S. proceedings relating to investigations into software to cheat diesel emissions tests that will result in costs of about $1.5 billion, the German carmaker said on Thursday.

The maker of Mercedes-Benz cars said it expects an impact on its free cash flow over the next three years as a result, with the main impact within the next 12 months.

"With the proposed settlements, the company takes an

important step towards legal certainty with respect to various diesel proceedings in the United States," it said in a statement.

German carmakers, among the global leaders in diesel technology, have been caught in the crosshairs of courts and regulators after Volkswagen admitted in 2015 to using engine control devices to cheat U.S. diesel emission tests.

The scandal triggered a global backlash against diesel vehicles that so far has cost VW 30 billion euros ($35.45 billion) in fines, penalties, vehicle buyback costs and other settlements.

In January, Daimler warned it faced further charges of up to 1.5 billion euros related to diesel pollution.

On Thursday, the company said it has made sufficient provisions for the expected cost of the settlements.

It expects to pay about $700 million to settle a class action lawsuit, including the court's anticipated award of attorney's fees and costs. It also expects a mid three-digit-million amount in euros for the settlements.

Investors in Germany are also suing Daimler for $1 billion, accusing it of concealing the use of emissions cheating software. Daimler denies the allegations.

(Reporting by Emma Thomasson; Editing by Susan Fenton and David Evans)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.