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

Daimler AG's Mercedes-Benz USA has agreed to a $20 million civil penalty over its handling of U.S. vehicle recalls, according to a government document seen by Reuters.

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 settlement is set to be made public later on Wednesday.