Mercedes-Benz pays US$1.2 million for Clean Air Act violation

[Tideland Prius]

Washington, D.C. - The U.S. Environmental Protection Agency (EPA) reports that Mercedes-Benz will pay US$1.2 million in civil penalties to resolve its failure to promptly notify the EPA about air pollution control defects on a number of 1998-2006 model-year vehicles. The automaker must also improve its emissions defect investigation and reporting system to ensure future compliance, at an estimated cost of approximately US$1 million per year.

After the EPA initiated its investigation, Mercedes commenced voluntary recalls for two of the defects, and notified owners that it would extend warranty coverage to address a third defect. The cost of the recalls and warranty are estimated at US$59 million.

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