Mercedes-Benz has reached a massive multi-million-dollar settlement over claims that it cheated on diesel emissions tests and misled consumers.
The details: The settlement, which includes Mercedes-Benz USA and Mercedes-Benz AG, requires the automaker to pay roughly $150 million to multiple states for equipping its diesel vehicles with illegal “defeat devices” so that they appeared to meet emissions requirements.
$120 million will be paid to the fifty state jurisdictions that took part in the investigation.
Roughly $29 million could be suspended and potentially waived pending Mercedes’ completion of a consumer relief program.
Another 40,000 Mercedes vehicle owners could receive $2,000 per car if they install approved emissions modification software and an extended warranty.
Why it matters: For dealers, another high-profile emissions case reinforces how quickly trust and residual values can be damaged when compliance fails—especially on “green” or premium products. It’s a reminder that retailers will be on the front lines answering owner questions, handling updates and buybacks, and defending brand reputation long after the settlement headlines fade.
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Between the lines: Concerns raised with Mercedes’ use of the “defeat devices”—which were installed in 211,000 model year 2008–2016 diesel passenger cars and vans—underscore the depth of the allegations.
The complaint alleges that the defeat devices enabled vehicles to far exceed many of the impacted states’ limits of NOx emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog.
The allegations further state that Mercedes marketed the vehicles to consumers as “environmentally-friendly” and in compliance with applicable emissions regulations.
What they’re saying: “This significant outcome demonstrates that no corporation—no matter how powerful—is above the law when it comes to protecting our environment and our consumers,” stated Maryland Attorney General Anthony Brown.
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