Additional Coverage:
Mercedes-Benz to Pay $149.6 Million in Emissions Settlement
Mercedes-Benz USA and its parent company, Daimler AG, have agreed to a $149.6 million settlement to resolve allegations that the automaker used “defeat devices” to cheat on emissions tests. The announcement was made Monday by a coalition of attorneys general from 50 states, the District of Columbia, and Puerto Rico.
The coalition claims that between 2008 and 2016, Mercedes-Benz equipped over 211,000 diesel passenger cars and vans with software designed to optimize emission controls during tests, while reducing those controls during normal driving conditions. These devices allegedly allowed vehicles to emit nitrogen oxides-a pollutant linked to respiratory illnesses and smog-far exceeding legal limits.
States accused Mercedes-Benz of installing these devices because it struggled to meet both design and performance goals, such as fuel efficiency, while simultaneously complying with emissions standards. The automaker is further alleged to have concealed these devices from regulators and the public, all while marketing the affected vehicles as “environmentally friendly” and compliant with emissions standards.
This agreement, which is still subject to court approval, follows a 2020 settlement where Daimler AG and Mercedes-Benz USA paid $1.5 billion to the U.S. government and California state regulators over similar emissions cheating allegations.
In a statement, Mercedes-Benz indicated that this new deal resolves all remaining U.S. legal proceedings related to diesel emissions. However, the company maintains that the accusations are unfounded and denies any liability, stating it has made “sufficient provisions” for the settlement costs.
The settlement allocates $120 million directly to the attorneys general, with an additional $29 million payment suspended. This suspended amount may be waived if Mercedes-Benz successfully implements a consumer relief program.
This program targets approximately 40,000 vehicles that had not been repaired or permanently removed from the road by August 1, 2023. Owners of these vehicles would receive $2,000 per vehicle upon installing approved emissions modification software and receiving an extended warranty.
The agreement also mandates that Mercedes-Benz comply with new reporting requirements and cease any further unfair or deceptive marketing or sale of diesel vehicles.
This case echoes a similar scandal involving Volkswagen, which paid $2.8 billion to settle a criminal case related to emissions cheating.