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Mercedes-Benz Reaches $149.6 Million Settlement Over Diesel Emissions Cheating
Mercedes-Benz USA and its parent company Daimler AG have agreed to pay $149.6 million to settle allegations that the luxury automaker secretly installed emissions-cheating devices in more than 211,000 diesel vehicles, according to an announcement Monday by a coalition of attorneys general from 50 states and territories.
The settlement addresses claims that between 2008 and 2016, Mercedes equipped diesel passenger cars and vans with sophisticated software that detected when vehicles were undergoing emissions testing. During these tests, the vehicles’ emission controls would function properly, but during normal on-road driving, the controls would be reduced, allowing nitrogen oxide emissions to exceed legal limits substantially.
Nitrogen oxides are regulated pollutants known to cause respiratory problems and contribute to smog formation, posing significant public health risks in urban areas.
State attorneys general alleged that Mercedes installed these “defeat devices” because the company was unable to meet both its performance goals—including fuel efficiency and driving dynamics—while simultaneously complying with increasingly stringent emissions standards. The automaker allegedly concealed these devices from regulators while marketing the vehicles as “environmentally friendly” and compliant with all emissions regulations.
“This case represents another chapter in the ongoing efforts by states to hold automakers accountable for circumventing environmental laws,” said one attorney general involved in the case. “Companies cannot place profits over compliance with regulations designed to protect public health.”
This latest settlement builds upon a previous $1.5 billion agreement that Mercedes-Benz reached in 2020 with the U.S. government and California state regulators over similar allegations. The new agreement is designed to resolve all remaining legal proceedings related to diesel emissions in the United States.
Despite agreeing to the settlement, Mercedes-Benz continues to deny any wrongdoing. In a statement, the company maintained that the accusations are unfounded and denied any liability, while noting it has already made “sufficient provisions” for the cost of the settlement.
The coalition announcing the settlement includes attorneys general from 48 states, the District of Columbia, and Puerto Rico. California, which had previously reached its own agreement with the automaker, was not part of this coalition.
Under the terms of the agreement, which still requires court approval, Mercedes will pay $120 million directly to the states. An additional $29 million payment is suspended and may be waived if the company successfully completes a consumer relief program.
That program targets approximately 40,000 affected vehicles that had not been repaired or permanently removed from roads as of August 1, 2023. Owners of these vehicles will receive $2,000 per vehicle if they install approved emissions modification software and accept an extended warranty.
The settlement also imposes strict compliance requirements on Mercedes-Benz, mandating regular reporting and prohibiting any further deceptive marketing or sales practices related to diesel vehicles.
This case follows the larger diesel emissions scandal that first emerged with Volkswagen in 2015. Volkswagen eventually paid $2.8 billion to settle criminal charges related to its emissions cheating, which affected approximately 11 million vehicles worldwide. The Mercedes case, while smaller in scope, reflects the continuing regulatory scrutiny of diesel technology across the automotive industry.
The automotive industry has increasingly moved away from diesel technology in passenger vehicles following these scandals, with many manufacturers accelerating their transition to electric vehicles. Mercedes-Benz itself has announced plans to become carbon-neutral and focus heavily on electric vehicle development in the coming decade.
Environmental advocates have welcomed the settlement but continue to push for stronger enforcement of emissions regulations across the automotive industry.
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16 Comments
Disappointing to see another major automaker caught up in emissions cheating allegations. Consumers need to be able to trust that automakers are accurately reporting vehicle emissions.
Agreed, this undermines consumer confidence. Automakers need to prioritize environmental compliance and transparency to rebuild trust.
This penalty highlights the need for stronger oversight and enforcement to prevent automakers from gaming emissions tests in the future. Consumers deserve honesty about the environmental impact of the vehicles they purchase.
Absolutely. Regulators must continue to crack down on these types of deceptive practices to maintain integrity in the auto industry.
Emissions tampering is a serious issue, especially for vehicles like diesel cars that can produce harmful pollutants. This penalty seems appropriate given the scale of the alleged violations by Mercedes.
It’s important that automakers meet emissions standards to protect air quality. Hopefully this settlement serves as a deterrent against future cheating attempts.
It’s good to see state AGs taking action against Mercedes-Benz for their emissions cheating. Automakers need to be held responsible for violations that impact public health and the environment.
Agreed, this type of deception is unacceptable. Hopefully this penalty serves as a deterrent and encourages greater transparency and compliance from the industry.
This is a significant penalty for Mercedes-Benz, but it’s important that automakers face meaningful consequences for violating emissions standards. Consumers deserve honesty about the environmental impact of their vehicles.
Absolutely. Regulators need to maintain strong oversight to prevent automakers from circumventing rules designed to protect public health and the environment.
This is a significant settlement for Mercedes-Benz over their diesel emissions cheating. It’s good to see state AGs holding automakers accountable for violations that impact public health and the environment.
Agreed. Deceptive emissions practices erode public trust and can have serious consequences. Compliance and transparency should be a top priority for all automakers.
This settlement highlights the importance of robust emissions testing and enforcement to prevent automakers from circumventing regulations. Protecting public health should be the top priority.
Absolutely. Regulators must continue to hold automakers accountable and ensure a level playing field to incentivize genuine emissions reductions.
It’s good to see state regulators holding Mercedes accountable for their emissions cheating. This is an important step in ensuring automakers prioritize environmental compliance.
Agreed, deceptive emissions practices undermine public trust. Automakers need to be transparent and follow the rules to protect public health and the environment.