The Department of Justice said that Mercedes-Benz USA and parent DaimlerChrysler AG will pay $1.2 million to settle allegations that they failed to report air pollution problems with Mercedes-Benz vehicles to federal regulators.
As a result of the complaint brought by the government, Mercedes-Benz USA has issued voluntary recalls for more than 100,000 vehicles and extended warranties to address the defects, at an estimated cost of $59 million. Under the settlement, the company is also required to overhaul its emissions reporting system. The improvements will likely cost the company $1 million per year, the Department of Justice said Thursday in a statement.
