Michigan joins $150M settlement with Mercedes over emissions violations

LANSING, Mich. (WILX) - Michigan Attorney General Dana Nessel joined 50 other attorneys general in announcing a nearly $150 million settlement with Mercedes-Benz USA and Daimler AG over allegations the companies violated state consumer protection laws by using illegal emissions technology.

The settlement stems from claims that Mercedes and Daimler marketed, sold, and leased diesel vehicles equipped with undisclosed “defeat devices” designed to bypass emissions standards.

The software allegedly reduced pollution controls during normal driving while allowing vehicles to pass laboratory emissions tests.

State officials said that between 2008 and 2016, Mercedes manufactured and distributed more than 211,000 diesel passenger cars and vans nationwide with the illegal software.

The vehicles allegedly emitted nitrogen oxides at levels far exceeding legal limits. Nitrogen oxides are linked to respiratory illness and smog formation.

Attorneys general allege the companies used the defeat devices to meet performance goals, including improved fuel efficiency and reduced maintenance, that could not be achieved while complying with emissions standards.

Mercedes is accused of concealing the devices from regulators and consumers while marketing the vehicles as environmentally friendly and emissions-compliant.

Under the settlement, Mercedes-Benz USA and Daimler AG will pay $120 million to the states immediately.

An additional $29.7 million will be suspended and may be waived if the companies complete a consumer relief program.

Michigan will receive $805,067 under the agreement. About 2,791 affected vehicles were sold or registered in the state.

“Michigan car buyers expect and deserve honest advertising, especially when it comes to making decisions that impact our environment,” Nessel said. “This settlement holds Mercedes accountable, and my office will continue to pursue companies that mislead consumers or attempt to evade emissions standards.”

The consumer relief program applies to about 39,565 vehicles nationwide that had not been repaired or permanently removed from the road as of Aug. 1, 2023.

Mercedes will be required to install approved emissions software at no cost to owners, provide an extended warranty and pay consumers $2,000 per affected vehicle.

The settlement also requires Mercedes to implement compliance reforms and prohibits deceptive marketing or misrepresentations related to diesel vehicle emissions.

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