Auto News: Daimler, Subaru & Mercedes Recalls, Volkswagen Settlement Funds

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Daimler Investors Seek $1 Billion Over Diesel Disclosure


Daimler AG was sued by more than 200 shareholders for as much as 900 million euros ($1 billion) over claims the parent of Mercedes-Benz luxury cars failed to properly disclose that its vehicles were fitted with technology to cheat on diesel emissions tests.

The suits were filed in a court in Stuttgart, Germany on behalf of institutional investors, including banks, investment companies, insurances and pension funds from Europe, North America, Asia and Australia.

Daimler now faces similar fallout to that of its peer Volkswagen AG, which has been battling a 9 billion-euro investor suit over how it informed the markets about the diesel scandal. In September, Daimler settled a probe by Stuttgart prosecutors, agreeing to pay 870 million euros for “negligent violation of supervisory duties” in the probe that looked into the selling of rigged diesel cars. read more »

Separate Recalls Issued For Subaru Ascents, Mercedes-Benz Models


Thousands of Subaru and Mercedes-Benz owners are being warned about issues with their cars as part of two separate recalls.

Nearly 77,000 Subaru Ascents may have issues with the hydraulic sensor in the transmission.

Officials said the sensor may not measure fluid pressure properly, increasing the risk of a crash.

Owners should look for recall notices in the mail by the end of this month.

In a separate recall, Mercedes-Benz is recalling nearly 750,000 older cars because glass from the sun roof could suddenly detach. read more »

$5.8 million from Volkswagen settlement funds awarded in Alabama


Gov. Kay Ivey has awarded nearly $5.8 million to nine public agencies and two businesses in the first allocation of funds the state received as part of a nationwide settlement against Volkswagen.

The grant recipients will use the funds to buy or upgrade pollution-reducing equipment and vehicles. The aim is to reduce nitrogen oxide emissions to offset environmental damage from Volkswagen Group of America Inc.’s manipulation of emission tests.

Volkswagen was found in violation of the U.S. Clean Air Act in 2016 by installing software in about 590,000 vehicles which misled the amount of emissions the vehicles were emitting. As a result, the company agreed to a $2.9 billion nationwide settlement with some of those funds allocated to the states. read more »