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 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 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.
Volkswagen has spent more than $25 billion in fines, vehicle and equipment replacements and other expenses related to its false claims about diesel emissions from nearly 11 million vehicles VW sold from 2009 to 2015.
FILE - In this Wednesday, Feb. 6, 2019 file photo the logo of Daimler is photographed on a car in Frankfurt, Germany, Wednesday, Feb. 6, 2019. The maker of Mercedes-Benz luxury cars says its earnings fell by about half last year. (AP Photo/Michael Probst, file)