Mercedes-Benz has reached a settlement with a group of US states, putting an end to a lengthy investigation into allegations of diesel emissions test manipulation. The German carmaker has agreed to pay $149.67 million to resolve the claims.
The investigation focused on accusations that Mercedes installed software in diesel vehicles that tampered with emissions performance during regulatory testing. This software allegedly allowed for higher pollution levels during normal driving, contradicting the company’s marketing claims of environmentally friendly vehicles.
Led by New York Attorney General Letitia James and eight other state attorneys general, the probe uncovered that Mercedes marketed the affected diesel models as clean and green, touting them as the world’s cleanest diesel automobiles. However, the vehicles were found to release far more pollution than permitted and did not perform as advertised.
More than 200,000 diesel cars in the US, with over 19,000 registered in New York, were equipped with the software between 2008 and 2017. As part of the settlement, Mercedes will pay $120 million upfront to the coalition of states, with $13.53 million allocated to New York. Additionally, a further $29.67 million in fines is contingent on the company bringing affected vehicles into compliance with emissions standards.
The settlement also includes provisions for compensating qualifying owners and lessees whose vehicles undergo an Approved Emissions Modification. Mercedes must issue notices to customers explaining how they can participate in the program and provide an extended emissions warranty for modified vehicles.
Furthermore, Mercedes is prohibited from selling or leasing diesel models containing the emissions software in question and making deceptive claims about emissions performance. The manufacturer must adhere to reporting obligations and provide regular updates to state regulators on repaired or removed vehicles.
This settlement not only holds Mercedes accountable for illegal emissions practices but also delivers funds to mitigate harmful emissions and assist consumers with costly vehicle repairs. The agreement sets the groundwork for increased transparency and compliance with emissions regulations in the future.
