Mercedes-Benz to Pay Up to $150 Million in U.S. Diesel Emissions Settlement

Mercedes-Benz Group AG will pay up to $150 million in a settlement with nearly all U.S. states over allegations that it used software “defeat devices” to cheat emissions tests in diesel vehicles. State officials said the company sold more than 211,000 vehicles nationwide from 2008 to 2016 equipped with software that made engines run more cleanly during emissions tests but reduced emissions restrictions in day-to-day driving, allowing the vehicles to exceed legal limits for nitrogen oxide emissions.

Kathy Jennings, attorney general of Delaware, said, “This was not a technical error or a paperwork mistake. It was a lie.” Connecticut Attorney General William Tong said officials found “a heavy dose of industrywide collusion” and “antitrust overtones” in their investigation. The company confirmed the settlement but denied wrongdoing, saying the deal related to the emission control systems of 2009 to 2016 BlueTEC II diesel passenger cars and vans sold in the United States.

Mercedes-Benz said it was taking “another important step toward resolution of various diesel proceedings” and that it “continues to regard the accusations made as unfounded.” Under the agreement the company will make an initial payment of $120 million and provide $2,000 in incentives for drivers to update the software on their vehicles.

Key Topics

Business, Mercedes-benz, Dieselgate, Bluetec Ii, Defeat Devices, Kathy Jennings