Mercedes-Benz Settles U.S. Diesel Emissions Claims for $149.6 Million

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 manipulation.

The agreement, announced by New York Attorney General Letitia James, addresses claims that the company installed undisclosed software in diesel vehicles to conceal higher real-world pollution levels during testing.

Under the terms, Mercedes will pay $120 million immediately to the states, with an additional $29.6 million suspended and reducible by $750 per affected vehicle repaired, removed, or bought back.

Eligible owners and lessees of approximately 39,565 unrepaired vehicles (as of August 2023) will receive $2,000 payments and extended warranties after emissions modifications. The company also commits to measures preventing future violations and compliance monitoring.

The states alleged the software allowed vehicles to emit up to 30-40 times legal limits in normal driving, despite passing laboratory tests.

A Mercedes spokesperson said the settlement, subject to court approval, concludes U.S. diesel-related legal matters without impacting group earnings, as provisions have been made.

The case stems from investigations launched after the 2015 Volkswagen emissions scandal. In 2020, Mercedes paid $2.2 billion to settle federal and owner claims. Ongoing litigation includes a mass lawsuit in England involving Mercedes alongside other manufacturers.

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