Mercedes Benz Agrees To Pay Additional 150 Million Dollars To Settle US Emissions Claims
The shadow of the diesel emissions scandal continues to loom over the automotive industry years after it first made headlines. Mercedes-Benz has agreed to pay nearly 150 million dollars to settle allegations that it used cheat software to evade emissions testing in the United States. This latest development confirms that the fallout from the so-called Dieselgate saga is far from concluded as automakers continue to resolve legal battles with various regulators and state authorities. The agreement was announced early this week and involves a coalition of 48 states along with Puerto Rico and the District of Columbia.
New York Attorney General Letitia James revealed the details of the settlement which resolves claims that the German automaker violated consumer protection and environmental laws. The investigation found that Mercedes illegally installed defeat devices in their diesel vehicles causing them to emit higher levels of pollution during real-world driving than allowed by law. These software updates were designed to detect when the car was undergoing official testing and temporarily reduce emissions to pass inspections. Once the vehicle returned to normal driving conditions on the road it would emit nitrogen oxide at levels up to 40 times higher than the legal limit.
The settlement structure requires the company to pay roughly 120 million dollars immediately to the participating states. The remaining amount of nearly 30 million dollars is currently suspended and serves as an incentive for the manufacturer to address the mechanical issues. Mercedes can reduce this suspended penalty by fixing the affected vehicles currently on the road. The company will receive a credit for every vehicle it repairs or removes from the market which encourages them to reach out to current owners promptly.
This legal action covers approximately 211,000 vehicles sold between 2008 and 2016 which includes both passenger cars and Sprinter vans equipped with BlueTEC diesel technology. Authorities estimate that nearly 40,000 of these vehicles are still on the road without the necessary repairs. To encourage compliance the settlement offers eligible owners a payment of up to 2,000 dollars if they bring their vehicle in for the required emissions modification. This payout is intended to compensate owners for the trouble and ensure that the polluting vehicles are finally brought into compliance with environmental standards.
Ohio Attorney General Dave Yost criticized the company for misleading consumers who believed they were purchasing environmentally friendly vehicles. He noted that the company marketed these cars as clean diesel options while they were actually releasing harmful pollutants that contribute to smog and respiratory health issues. Despite agreeing to the settlement Mercedes-Benz has denied any liability and maintains that the accusations are unfounded. The company stated that it settled to avoid the cost and distraction of prolonged litigation. This payment comes on top of a massive 1.5 billion dollar settlement the automaker reached with the United States Department of Justice and the Environmental Protection Agency back in 2020.
We want to know if this news changes your perception of diesel technology or if you think the penalties for automakers are severe enough.
Please share your thoughts on the future of diesel engines and these settlements in the comments.
