Mercedes Benz fined $1.4 billion for diesel emissions scandal

Mercedes-Benz parent company Daimler has been penalized with a fine of $1.4 billion in the prosecution of non-compliance with diesel emissions standards. As reported, the company did not fully comply with regulations regarding the oxides of nitrogen (NOx) emissions.

Around 684,000 diesel vehicles sold in Germany are included in the cheating scandal. In the context, the company states that the order of German authorities is accepted as this is in our best interest to end the administrative offence proceeding in a timely and comprehensive manner.

Also, the imposed penalty will not impact the estimated future profits of the company as they have already made provisions for this. The provision was made after Ola Kallenius took over the position of Chief Executive Officer.

Daimler was fined $6.5 million for "negligent violation of supervisory duties", with the remainder of the fine determined by the firm’s current profits.

The Mercedes diesel emission scandal appeared just about four years to the day after Volkswagen’s Dieselgate scandal which was exposed by the Environmental Protection Agency and California’s Air Resources Board. 

This scandal affected 11 million cars worldwide, and it initiated several other investigations and lawsuits to find out the happening of any such other acts. And all this led to disclose the Mercedes in emission scandal companies.

In the previous year, Volkswagen was fined $1.6 billion, while Audi was penalized with $1.3 billion. And Porsche accepted a fine of $865 million this year for the Dieselgate issue.

Moreover, Germany’s motor authority also found that 280,000 Mercedes-Benz C-class and E-class vehicles had been equipped with such software that made the vehicles look cleaner than they were during testing. This resulted in a huge call of 700,000 affected vehicles around the world last year. The firm also recalls 60,000 GLK SUVs for the same concern earlier this year. 

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