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The award follows a ruling by an industrial tribunal in May that the firm had dismissed its head of IT research and development, Khalid Jayyosi, on racist grounds.
Jayyosi, a Palestinian who has lived in the UK since 1993, lost his job managing a team of six IT staff after only 10 months, despite a first-rate appraisal from his line manager.
At work he suffered months of racist slurs, was compared with the 11 September terrorists and had his computer password changed to "suicide bomber".
Jayyosi said this week that he had mixed feelings about the settlement, adding that the matter could have been resolved long ago. "All I wanted was an apology," he said.
The tribunal concluded that DaimlerChrysler had only decided to make Jayyosi redundant after he asked the firm's personnel department to write a letter to his MP in support of his asylum application. No other staff lost their jobs, and DaimlerChrysler replaced his post with a position that Jayyosi was qualified to fill, the tribunal found.
A spokeswoman for Daimler Chrysler said, "The decision is a matter of public record, and we are making no further comment on the issue."