German prosecutors fined Daimler 870 million euros ($960 million) for "negligent violation" in a probe into selling rigged diesel cars.
Prosecutors found the automaker sold about 684,000 vehicles that did not completely comply with regulations on emissions of nitrogen oxides, according to a statement from Stuttgart authorities.
In a separate statement, Daimler, which builds Mercedes-Benz cars, said the fine is not expected to have a significant impact on third-quarter earnings.
The fine is the latest fallout from heightened scrutiny in the aftermath of Volkswagen Group's diesel-cheating scandal, which continues to reverberate across the German auto industry four years later.
Volkswagen's CEO Herbert Diess and Chairman Hans Dieter Poetsch on Tuesday were charged with market manipulation in Germany over allegations they failed to inform investors early enough about the rigged engines. Former CEO, Martin Winterkorn, was also charged.
Authorities in Stuttgart, Daimler's hometown, opened proceedings earlier this year. Volkswagen's Porsche unit in May settled for 535 million euros, and parts supplier Robert Bosch agreed to pay 90 million euros.
Stuttgart prosecutors said theDaimler fine has no impact on an ongoing investigation into individuals in relation to suspected manipulation of diesel engine software
Reuters contributed to this report
