Mercedes-Benz has concluded an investigation into diesel engine emissions data falsification across several U.S. states. The total settlement amount reached $149.6 million. Out of this, $120 million will be paid to the states immediately, while the remaining $29.67 million will be held in an escrow account and may be deducted upon completion of the program.
As part of the program, vehicle owners and lessees who undergo emissions control system repairs will receive $2000 each. Previously, Mercedes was accused of installing “defeat devices” that artificially lowered emissions readings during tests, while actual emissions were 65 times higher than the standard. A class action lawsuit was first filed in New Jersey in February 2016. In 2020, Mercedes already reached a $1.5 billion settlement with the federal government, closing federal court proceedings related to diesel emissions in the U.S.
Recent news reveals that Mercedes-Benz is moving forward with further emission reduction strategies, including plans to introduce more electric vehicles into their lineup. The settlement has intensified their focus on cleaner technology and innovation.
The $1.5 billion federal settlement in 2020 was a monumental decision for Mercedes-Benz, significantly impacting their financial and brand image. It underscored the company’s commitment to resolving diesel emissions disputes and underscored a shift towards transparency and sustainability within the automotive industry.
In comparing Mercedes-Benz’s scandal with Volkswagen’s diesel gate, both cases involved sophisticated technology to evade emissions tests, resulting in severe penalties and significant reputational damage. However, Mercedes-Benz’s approach to settlement and remediation has highlighted a more cooperative stance with regulatory authorities and a progressive move towards cleaner alternatives.
