Mercedes-Benz Settles Diesel Emissions Cheating Allegations for $149.6 Million: What You Need to Know
Mercedes-Benz has agreed to a $149.6 million settlement with 48 U.S. states, Puerto Rico, and the District of Columbia to resolve allegations of diesel emissions cheating. The settlement includes payments to eligible owners and lessees of affected vehicles and requires Mercedes to take actions to prevent future misconduct. The automaker was accused of installing unlawful software in diesel vehicles to manipulate emissions levels during testing, resulting in emissions up to 30 or 40 times the legal limit in normal driving conditions.
The settlement covers approximately 39,565 U.S. vehicles that had not been repaired or removed from the road by August 2023. Mercedes will cover the costs of installing approved emission modification software on these vehicles, provide an extended warranty, and pay affected consumers $2,000 per vehicle. The company stated that the settlement costs have been provisioned for and will not impact its bottom-line earnings.
Mercedes-Benz previously agreed to a $2.2 billion settlement in 2020 to resolve a U.S. government investigation into diesel emissions cheating. As part of the recent settlement with the states, Mercedes must immediately pay $120 million, with an additional $29.6 million suspended and subject to reduction based on the number of vehicles repaired, removed from the market, or bought back by the company.
The investigation into Mercedes-Benz was initiated in 2020 following Volkswagen's diesel emissions scandal. Other automakers, including Mercedes, are facing legal actions related to emissions cheating. Mercedes may face additional payouts, such as in England, where it is involved in a mass lawsuit alongside other companies. The settlements with the states are pending final court approval.
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