Daimler agrees to $20 million settlement over U.S. vehicle recalls

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Daimler agrees to $20 million settlement over U.S. vehicle recalls
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Daimler AG's Mercedes-Benz USA has agreed to a $20 million civil penalty ov...

FILE PHOTO: The Mercedes-Benz logo is seen before the company's annual news conference in Stuttgart, Germany, February 4, 2016. REUTERS/Michaela Rehle

Under the terms of the settlement, the German automaker will pay $13 million and faces another $7 million fine if it does not comply with the agreement. The National Highway Traffic Safety Administration said Daimler failed to notify owners in a timely fashion in some recalls, did not submit all reports and did not launch at least two recalls in a timely fashion.

The automaker will meet with NHTSA on a quarterly basis to discuss its recall performance for at least a year. The automaker is “currently developing more robust procedures with regard to reporting noncompliance concerns.”

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