Daimler AG has agreed to settle US claims over emissions from its diesel vehicles for over $2.2 billion.
The global company produces Mercedes-Benz cars as well as Mercedes-Benz, Setra, and BharatBenz buses.
The German auto maker’s agreement with various US authorities concerns civil and environmental claims involving about 250,000 diesel cars and vans, according to the Associated Press.
The civil cases related to a consumer class-action lawsuit pending before the US District Court for the District of New Jersey.
In a statement, Daimler said 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. The company said its board of management and the supervisory boards of Daimler and Mercedes-Benz 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. U.S. regulators stepped up their examination of diesel emissions after Volkswagen AG’s cheating scandal emerged in 2015, according to the Claims Journal.