Salem, Oregon – Oregon Attorney General Dan Rayfield announced that a group of attorneys general from all over the country has reached a settlement with Mercedes-Benz USA for almost $150 million. The settlement ends allegations that the automaker broke state consumer protection and environmental laws by using illegal emissions software.
Mercedes-Benz USA will pay the states $149,673,750 as part of the deal. More than $200 million will be put aside for impacted vehicle owners. Oregon will get $2,560,231.86 to settle charges against unfair business practices and harm done to the environment. The settlement addresses conduct that states say misled regulators and consumers while increasing harmful air pollution.
The claims include that Mercedes produced, sold, and promoted more than 211,000 diesel vehicles and vans across the country between 2008 and 2016 that had “defeat devices” that hid their emissions. These software systems were made to know when cars were being tested for emissions and turn on all pollution controls for a short time. The controls were turned down while driving normally, which let the cars release nitrogen oxides at quantities that were much higher than what was allowed by law.
Nitrogen oxides are known to contribute to respiratory illness and smog formation. The states say that Mercedes utilized the software to fulfill performance goals including better fuel economy and cheaper maintenance costs, but they didn’t follow emissions requirements. The corporation also advertised the cars as being good for the environment and meeting all emissions requirements.
Mercedes must pay $120 million right away as part of the settlement. The corporation will still have to pay $29.6 million, but that money may be waived if they fully finish a consumer relief program. That program applies to an estimated 39,565 vehicles nationwide that had not been repaired or permanently removed from service by August 1, 2023, including 4,094 vehicles in Oregon.
As part of the settlement, Mercedes must give consumers free certified emissions modification software, longer warranties, and $2,000 for each impacted vehicle to the owners who agree to take part. The agreement also requires ongoing reporting, reforms to business practices, and a prohibition on deceptive marketing related to diesel vehicle emissions.
The settlement with Mercedes comes after similar measures were taken against other automakers and suppliers in many states. In 2016, Volkswagen paid $570 million to resolve a lawsuit. In 2019, Fiat Chrysler paid $72.5 million, and Robert Bosch GmbH settled for $98.7 million the same year.
