HARRISBURG — Attorney General Dave Sunday, along with a coalition of 50 Attorneys General, announced a $149 million settlement with Mercedes-Benz USA regarding the manufacturer allegedly violating state laws by equipping vehicles with software to defeat emissions testing.
The company, between 2008 and 2016, manufactured and distributed more than 200,000 “environmentally-friendly” diesel passenger cars and vans nationwide with the defeat devices — which were not disclosed to buyers. The devices allegedly made it appear as though vehicles were within required emissions standards during emissions testing. When the vehicles are on the road, the vehicles emissions’ far exceed the legal limits of nitrogen oxide emissions, a harmful pollutant that causes respiratory illness and contributes to smog.
Pennsylvania will receive a $6.6 million share of the settlement payout, with the funds being shared by the state Office of Attorney General, Department of Environmental Protection, and Department of Transportation. More than 10,500 of the impacted vehicles were sold or registered in Pennsylvania.
“This luxury-vehicle manufacturer cut corners to make their products more attractive to consumers, while blatantly lying about the vehicles achieving emissions standards,” Attorney General Sunday said. “Emissions regulations are in place to protect Pennsylvanians and the environment from harmful chemicals. This settlement forces Mercedes to be transparent with consumers, and offers consumers a window for free maintenance and installation of emission modification software.”
Mercedes allegedly engaged in this conduct to achieve design and performance goals, such as increased fuel efficiency and reduced maintenance, that it was unable to meet while complying with applicable emission standards. Mercedes allegedly concealed the existence of these defeat devices from the public and regulators at the state and federal level. At the same time, Mercedes marketed the vehicles to consumers as “environmentally-friendly” and in compliance with applicable emissions regulations.
The settlement requires Mercedes-Benz USA to pay $120 million to the states upon the effective date of the settlement. An additional $29,673,750 will be suspended and potentially waived if a comprehensive consumer relief program is completed by Mercedes.
The consumer relief program extends to the estimated 39,565 vehicles, which as of August 1, 2021 had not yet been repaired or permanently removed from roads in the United States. Mercedes will bear the cost of installing approved emission modification software on each of the affected vehicles. The company must provide participating consumers with an extended warranty and will pay consumers $2,000 per impacted vehicle.
The company must also comply with further reporting requirements and reform their business practices, including a prohibition on any further engagement in unfair or deceptive marketing or sale of diesel vehicles, misrepresentations regarding emissions and compliance with emissions standards.
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