Mercedes-Benz to pay up to settle emissions scandal
Mercedes-Benz USA and parent company Daimler AG agreed to pay nearly US$150 million ($225 million) to resolve allegations that the automaker secretly installed devices in hundreds of thousands of vehicles to bypass emissions tests.
Between 2008 and 2016, the German automaker equipped more than 211,000 diesel passenger cars and pickup trucks with software devices that optimized emissions controls during testing but reduced the controls during normal operations, according to a coalition of attorneys general.
The devices enabled vehicles to far exceed legal limits for nitrogen oxides, a pollutant that can cause respiratory illnesses and contribute to smog.
The statement claimed that Mercedes installed the devices because it could not achieve design and performance goals such as fuel efficiency while complying with emission standards.
The automaker allegedly concealed the devices from state and federal regulators and the public while marketing the vehicles as “eco-friendly” and compliant with emissions standards.
A spokesman for the automaker had no immediate comment.
Daimler AG and Mercedes-Benz USA have agreed to pay US$1.5 billion ($A2.3 billion) to the US government and California state regulators in 2020 to resolve allegations of emissions cheating.
The coalition announced Monday includes fifty attorneys general, including the attorneys general of the District of Columbia and Puerto Rico. California was not part of the group.
The agreement calls for the automaker to pay $US120 million ($A180 million) to attorneys general, with another payment of $US29 million ($A44 million) suspended and potentially waived pending completion of the consumer assistance program.
This effort will cover approximately 40,000 vehicles with devices that have not been repaired or permanently removed from the road by August 2023. Owners of these vehicles will receive US$2000 ($A3000) per vehicle if they install approved emissions modification software and extended warranty.
The agreement also demands that Mercedes comply with reporting requirements and refrain from unfair or deceptive marketing or sales of diesel vehicles.
Volkswagen also paid US$2.8 billion ($4.2 billion) to settle a criminal case over emissions cheating.
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