Officials say Daimler AG and subsidiary Mercedes-Benz USA cheated on emissions tests, will pay $1.5B settlement

WASHINGTON (AP) – Automakers Daimler AG and subsidiary Mercedes-Benz USA have agreed to pay $1.5 billion to the U.S. government and California state regulators to resolve emissions cheating allegations. Officials say Daimler violated environmental laws by using so-called “defeat device software” to circumvent emissions testing and sold about 250,000 cars and vans in the U.S. with diesel engines that didn’t comply with state and federal laws. The settlement, which includes civil penalties, will also require Daimler to fix the vehicles. The Stuttgart, Germany-based automaker said in August it had agreements with the Justice Department, Environmental Protection Agency, Customs and Border Protection, the California Air Resources Board and others over civil and environmental claims.