Mercedes-Benz Settles with U.S. Authorities over Diesel Scandal

by Aryn Plax

Sep 1, 2020

Mercedes-Benz and parent company Daimler will pay more than $2 million to settle with United States authorities and American consumers over accusations of cheating diesel emissions tests.

The automaker announced in August that it reached two separate agreements.

The first was a deal with the U.S. Environmental Protection Agency, California Air Resources Board and the Justice Department, which will cost the automaker about $1.5 billion.

The second agreement, which settles a class action lawsuit with consumers, will cost the automaker $700 million.

The class action settlement still has to be finalized, according to a press release.

A Mercedes-Benz Vehicle

Daimler, like other automakers in similar cases, initially denied the accusations that it used cheat devices to enable emissions controls in test environments. In these cases, automakers were accused of having their diesel vehicles emit acceptable levels of pollutants in test environments, only to have emissions controls shut off when the vehicles hit the road.

Source: Detroit Free Press