Daimler to pay $2.2 billion in U.S. settlements

Following a five year investigation, Daimler is to pay $2.2 billion to the U.S. government.

Court documents show the diesel emissions cheating probe includes claims from 250,000 U.S. vehicle owners.

The German automaker and its Mercedes-Benz USA unit disclosed in August that it had reached a settlement in principle.

The Justice Department said that Daimler failed to disclose at least 16 auxiliary emissions control devices.

These allegedly allowed "vehicles to perform in a variety of consumer-desirable ways, including better fuel mileage".

Now the department says the settlement will "deter any others who may be tempted to violate the nation’s pollution laws".

Daimler noted in court papers it denies the allegations "and does not admit any liability".

The German automaker still faces an ongoing criminal investigation and could face additional U.S. financial penalties.

It will also issue recalls and extended warranties on affected vehicles.

But it's not required to buy back any, unless it is unable to offer an emissions fix.

Diesel vehicles have come under scrutiny in the U.S. since Volkswagen admitted in 2015 to installing secret software on 580,000 U.S. vehicles.

That allowed them to emit up to 40 times legally allowable emissions.

Both Volkswagen and Daimler have since halted sales of U.S. passenger diesel vehicles.