Attorney General Ford Announces Nearly $150 Million Settlement with Mercedez-Benz USA and Daimler AG Over Emissions Fraud

Carson City, NV – Today Attorney General Aaron D. Ford joined a coalition of 50 attorneys general announcing a $149,673,750 settlement with Mercedes-Benz USA and Daimler AG for violating state laws prohibiting unfair or deceptive trade practices by marketing, selling and leasing vehicles equipped with illegal and undisclosed emissions defeat devices designed to circumvent emissions standards. Approximately 3,109 impacted vehicles were sold or registered in Nevada.

Beginning in 2008 and continuing to 2016, the states allege 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 outside of normal operations. The states allege the defeat devices enabled vehicles to far exceed many legal limits of nitrogen oxides (NOx) emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog.

“Nevadans deserve honest information about the products they purchase and the air they breathe,” said Attorney General Ford. “This settlement holds Mercedes-Benz accountable for misleading consumers and evading emissions standards, while delivering meaningful relief for impacted vehicle owners and reinforcing that companies cannot put profits ahead of public health and environmental protections.”

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 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 in compliance with applicable emissions regulations.

Today’s settlement requires Mercedes-Benz USA and Daimler AG to pay $120 million to the states immediately 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. The consumer relief program extends to the estimated 39,565 vehicles which as of August 1, 2023, had not been repaired or permanently removed from the road in the United States. Mercedes must bear the cost of installing approved emission modification software on each of the effected vehicles.

The company must provide consumers with an extended warranty and pay consumers $2,000 per subject vehicle. The company must also comply with reporting requirements and reforms to their practices, including a prohibition on any further engagement in unfair or deceptive marketing or sale of diesel vehicles, misrepresentations regarding emissions and compliance. Today’s settlement follows similar settlements reached previously between the states and 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.

 
The attorneys general of Alabama, Connecticut, Delaware, Georgia, Maryland, New Jersey, New York, South Carolina, and Texas led today’s settlement, and were assisted by Attorney General Ford as well as the attorneys general from Alaska, Arkansas, Colorado, the District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and Puerto Rico joined in today’s settlement.

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