German carmaker Daimler, which owns Mercedes-Benz, has agreed to pay $1.5bn (£1.2bn) to resolve US authorities claims that it designed its diesel autos to cheat air air pollution assessments.

The agency was investigated for putting in software program to evade emissions legal guidelines in 250,000 Mercedes vehicles and vans.

US officers stated they hoped the positive would deter future misbehaviour.

Daimler known as the deal an “vital step” in direction of resolving diesel proceedings however denied the claims.

“By resolving these proceedings, Daimler avoids prolonged court docket actions with respective authorized and monetary dangers,” the corporate stated.

Along with the $1.5bn settlement with US authorities, Daimler stated it had agreed to pay $700m to settle a category motion lawsuit introduced by homeowners.

It additionally disclosed “additional bills of a mid three-digit-million EUR quantity to fulfil necessities of the settlements.”

Clear Air Act

The deals, which Daimler had said it was nearing last month, conclude an investigation that the US started in 2016, after “defeat gadgets” have been found by means of testing.

Officers stated that an $875m positive included within the $1.5bn settlement with authorities is the second-largest civil penalty the US has ever imposed below its Clear Air Act and the most important if measured on a per-vehicle foundation.

Daimler has additionally agreed to repair the affected vehicles, which have been bought between 2009 and 2016, without charge to their homeowners. US officers stated that dedication was price about $400m.

At a press convention on Monday, Andrew Wheeler, the top of the US Environmental Safety Company, stated: “The message we’re sending right now is obvious: We’ll implement the legislation.

“In case you attempt to cheat the system and mislead the general public, you can be caught. Those that violate public belief in pursuit of income will forfeit each.”

Greater emissions scandal

The penalties are the newest in a wide-ranging scandal that has forged a cloud over the motor business since 2015, when Volkswagen admitted to installing secret software on autos bought within the US.

The system allowed the vehicles to emit as much as 40 occasions legally permitted emissions and evade detection throughout assessments.

Volkswagen later admitted the gadgets affected greater than 11 million autos globally. The corporate greater than $20bn to resolve claims within the US alone.

However investigations quickly widened to different corporations, together with Ford, Mitsubishi, and Nissan.

In 2018, Daimler recalled more than 700,000 vehicles in Europe that had “defeat gadgets” put in. BMW and Porsche have additionally recalled vehicles over the problem.

Fiat Chrysler in Europe were raided this summer over the matter. The agency agreed to an estimated $800m settlement to resolve civil claims within the US in January.

Daimler stated the US settlement involved autos that weren’t bought in the identical configurations in Europe.