WASHINGTON – Automaker Daimler AG and subsidiary Mercedes-Benz USA have agreed to pay $1.5 billion to the U.S. government and California state regulators to resolve emissions cheating allegations, officials said Monday.
The settlement, which includes civil penalties, will also require Daimler to fix the vehicles, officials said.
Daimler AG said the settlement would bring costs of about $1.5 billion, while the civil settlement will bring a one-off charge of about $700 million.
Fiat Chrysler also is being investigated for allegedly cheating on emissions.
In April 2016, the Justice Department asked Daimler to conduct an internal probe into its exhaust emissions certification process.