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DCX to pay $1.2 million to settle environmental suit

From freep| April 03,2007

DaimlerChrysler AG has agreed to pay a $1.2-million fine to settle allegations that it did not promptly alert the government about emissions problems in some Mercedes automobiles.

As part of an agreement with the Justice Department filed in federal court Sunday, the automaker agreed to institute a program to monitor its cars for emission defects and said it would file regular reports to the government.

The lawsuit involved emission-related defects in certain 1998-2006 Mercedes vehicles. The Justice Department said Mercedes didn’t tell the EPA within 15 days of learning about a series of problems with airflow sensors, catalytic converters, air pumps and other parts.

Hundreds of thousands of vehicles had the potential to develop emissions problems, according to the lawsuit. Mercedes has voluntarily recalled some of the parts identified by the lawsuit and has extended its emissions warranty on others.

Shares of DaimlerChrysler AG were trading up 52 cents, at $82.33, on the New York Stock Exchange.

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