Mercedes-Benz Settles Emission Scandal with $149.6 Million Payment

Mercedes-Benz USA and parent company Daimler AG will pay $149.6 million to settle accusations of using devices to cheat emission tests in over 211,000 diesel vehicles from 2008 to 2016. The settlement follows a previous $1.5 billion agreement made in 2020 over the same issue.

Mercedes-Benz USA and Daimler AG have agreed to a $149.6 million settlement following allegations of secretly fitting devices in vehicles to pass emission tests. Announced by a coalition of state attorneys general, this comes after over 211,000 vehicles were found using emission control software during tests but not in regular use, causing excessive pollution.

From 2008 to 2016, these actions bypassed legal nitrogen oxide limits, a major smog contributor and health hazard. The automaker allegedly hid these devices while promoting the vehicles as eco-friendly, misleading both consumers and regulators.

Part of the settlement includes $120 million to state attorneys general and a possible $29 million waiver, pending a consumer relief effort for 40,000 affected vehicles. The company must also adhere to marketing transparency and avoid deceptive practices. This follows a $1.5 billion settlement from 2020 and parallels Volkswagen's $2.8 billion penalty for similar misconduct.