Mercedes-Benz Paying up to $149.6M as Part of Settlement Over Emissions Cheating Allegations

Mercedes-Benz Group and its U.S. business will pay up to $149.6 million to 48 states, Puerto Rico, and the District of Columbia as part of a settlement involving alleged vehicle software that cheats emissions tests, reports Wards Auto.

Involved in the settlement are 15 models of BlueTEC II Diesel passenger cars and vans from model years 2009 to 2016. The settlement agreement says that software to dodge emissions tests were installed in over 200,000 diesel-powered vehicles between 2008 and 2017. South Carolina’s AG office has estimated that over 39,000 of the vehicles were still on roadways as of August 2023.

Mercedes has faced scrutiny over its emissions cheating devices since 2018, with other settlements having already been made with Arizona, California, and the U.S. Department of Justice and Environmental Protection Agency.

Mercedes will immediately pay $120 million to the states in the settlement, with $29.6 million suspended and  $2,000 paid to owners and lessees of the affected vehicles who bring their vehicle up to emissions standards. Eligible consumers will also receive an extended warranty from Mercedes, worth an estimated $1,200 each.

The company will also have its suspended $29.6 million penalty reduced by $750 for each affected vehicle Mercedes repairs, buys back, or removes from the market.