Mercedes reaches $150 million settlement with U.S. states over diesel emissions scandal

Cnbc
Mercedes-Benz will pay $149.6 million to U.S. states and provide payments to owners to settle a diesel emissions cheating investigation.

Summary

Mercedes-Benz has reached a $149.6 million settlement with 48 U.S. states, Puerto Rico, and the District of Columbia, resolving a long-running investigation into allegations of diesel emissions cheating. This deal effectively ends Mercedes’ legal issues in the U.S. related to the “dieselgate” scandal, which originated with Volkswagen in 2015. The settlement requires Mercedes to pay $149.6 million, including $2,000 to eligible owners of affected vehicles that received required emissions repairs. The states alleged that Mercedes installed unlawful software in diesel vehicles to hide actual pollution levels, resulting in emissions up to 40 times the legal limit during normal driving. Mercedes stated the settlement will not affect its bottom-line earnings, as a sufficient provision had already been made for the costs. This follows a 2020 settlement where Mercedes-Benz paid $2.2 billion to resolve a similar U.S. government investigation. The company must also pay for approved emission modification software and provide extended warranties to consumers.

(Source:Cnbc)

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