It’s been a long time coming, but according to an announcement made on Thursday, German automaker Daimler has reached a settlement with the U.S. government over its involvement in a diesel emissions cheating scandal.
The settlement will cost Daimler approximately $3 billion, with $1.5 billion going to the government, another $700 million going to customers and another “mid-three-digit-million EUR (euro)” amount to adequately fulfill the requirements of the settlements.
That is a lot of cash and understandably it is expected to have a sizable impact on the company’s finances. Daimler predicts that it will continue to affect its free cash flow for the next three years, which is a big deal considering the size of the company.
Of course, even though $3 billion is a lot of money to anyone, it pales in comparison to thethat Volkswagen agreed to for its much more significant role in the diesel cheating scandal . When you consider that Daimler’s violation affected some 250,000 cars, it got off pretty light. Volkswagen’s indiscretion was just over twice the number of vehicles as Daimler’s, but it had a much steeper fine.
Daimler didn’t immediately respond to Roadshow’s request for further comment.