A nationwide settlement is set to reshape how certain diesel cars are fixed, marketed, and compensated after states said hidden software let pollution levels soar beyond legal limits.
A coalition of 50 attorneys general announced a $149,673,750 settlement with Mercedes-Benz USA and Daimler AG over claims the companies violated state laws that prohibit unfair or deceptive trade practices.
The agreement centers on diesel passenger cars and vans sold or leased with undisclosed emissions defeat devices.
States allege that from 2008 through 2016, Mercedes manufactured and sold more than 211,000 diesel cars nationwide equipped with software designed to adjust emission controls during testing, while reducing those controls during normal driving.
According to the states, that design allowed nitrogen oxides emissions to exceed legal limits, contributing to smog and respiratory illness.
In Nevada, about 3,109 impacted cars were sold or registered.
“Nevadans deserve honest information about the products they purchase and the air they breathe,” said Nevada Attorney General Aaron D. Ford. “This settlement holds Mercedes-Benz accountable for misleading consumers and evading emissions standards, while delivering meaningful relief for impacted vehicle owners and reinforcing that companies cannot put profits ahead of public health and environmental protections.”
States allege Mercedes used the software to meet design goals like better fuel efficiency and reduced maintenance that could not be achieved while following emissions standards.
The company is accused of concealing the software from regulators and the public, while marketing the cars as environmentally friendly and compliant with emissions rules.
Under the settlement, Mercedes-Benz USA and Daimler AG must pay $120 million to the states immediately.
An additional $29,673,750 is suspended and could be waived if the companies complete a consumer relief program.
That program applies to an estimated 39,565 cars nationwide that, as of August 1, 2023, had not been repaired or permanently removed from the road. Mercedes must cover the cost of approved emissions software updates, provide extended warranties, and pay people $2,000 for each affected car.
The settlement also requires reporting and changes to business practices, including a ban on deceptive marketing or misrepresentation of diesel car emissions.
The agreement follows earlier state settlements involving Volkswagen, Fiat Chrysler, and Robert Bosch GmbH, tied to similar emissions software issues.
