Attorney General Kaul Announces Multistate Settlement With Mercedes Over Alleged Emissions Fraud

MADISON, Wis. – Attorney General Josh Kaul announced that Wisconsin has joined a coalition of 50 attorneys general in reaching a $149,673,750 settlement with Mercedes-Benz AG (together, “Mercedes”) arising from claims that the companies marketed, sold and leased vehicles equipped with illegal and undisclosed emissions defeat devices designed to circumvent emissions standards. The settlement also includes more than $200 million in potential consumer relief.

The consumer relief program extends to the estimated 39,565 vehicles that had not been repaired or permanently removed from the road in the United States by August 1, 2023. Mercedes also must provide participating consumers with an extended warranty and will pay consumers $2,000 per subject vehicle.

As part of the settlement, Mercedes will send an approved notice to eligible owners and lessees of eligible vehicles with information on steps they can take to receive the available relief.

The companies must also comply with reporting requirements, reform their practices, and refrain from any further unfair or deceptive marketing or sale of diesel vehicles, including misrepresentations regarding emissions and compliance.

“Deceiving the public about vehicle emissions is unfair to consumers and harmful to the environment,” said Attorney General Kaul. “This settlement brings accountability and relief for consumers.”

Beginning in 2008 and continuing to 2016, Wisconsin and the coalition allege that Mercedes manufactured, marketed, advertised, and distributed nationwide more than 211,000 diesel passenger cars and vans equipped with software defeat devices that optimized emission controls during emissions tests, while reducing those controls during normal operations. The defeat devices enabled vehicles to far exceed legal limits of nitrogen oxides (NOx) emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog. According to the allegations, Mercedes engaged in this conduct to achieve design and performance goals, such as increased fuel efficiency and reduced maintenance, which it was unable to meet while complying with applicable emission standards. Mercedes allegedly concealed the existence of these defeat devices from state and federal regulators and the public. At the same time, Mercedes marketed the vehicles to consumers as “environmentally-friendly” and as compliant with applicable emissions regulations.

Today’s settlement requires Mercedes to pay $120 million to the jurisdictions upon the effective date of the settlement. An additional $29,673,750 will be suspended and potentially waived pending completion of a comprehensive consumer relief program.

Wisconsin’s portion of the settlement is $630,854.

Today’s settlement follows similar settlements reached previously by Wisconsin and other states with Volkswagen, Fiat Chrysler, and German engineering company Robert Bosch GmbH over its development of the cheat software. Automaker Fiat Chrysler and its subsidiaries paid $72.5 million to the states in 2019. Bosch paid $98.7 million in 2019. Volkswagen reached a $570 million settlement with the states in 2016.

Joining Attorney General Kaul in this multistate settlement are the attorneys general of Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wyoming, and Puerto Rico.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.