Attorney General Schwalb, aligned with a coalition of attorneys general from across 50 states, announced a substantial $149.7 million settlement with Mercedes-Benz USA and Mercedes-Benz Group AG, settling allegations that the automaker misled consumers and regulators about the emissions from over 200,000 diesel vehicles nationwide, including some 380 in the District of Columbia, according to a recent release.
The group of attorneys general accused Mercedes of crafting and utilizing software "defeat devices" to pass emissions testing; this software manipulation enabled vehicles to appear compliant under test conditions while they emitted pollutants above legal limits during regular driving, resulting in tons of excessive air pollution, within these accusations Mercedes also stands accused of hiding both their cheat devices and the true pollutant output from public and regulatory knowledge. Those familiar with the matters say under the settlement, Mercedes will pay notable fines to the affected states, shell out $250,000 to the District, as well as cover the costs of vehicle repairs to ensure future emissions compliance and provide $2,000 restitution to qualifying customers who have had corrective software installed.
Mercedes reportedly skirted the implementation of NOx control technologies, potentially impacting fuel efficiency and maintenance requirements, in their diesel vehicles manufactured from 2008 through 2016, which ultimately led to emitting nitrogen oxides beyond lawful parameters outside controlled emission testing environments, Attorney General Schwalb firmly stated, "My office will not allow companies to profit by cheating the system, lying to consumers, or polluting our environment," calling attention to the fraudulent and illegal practices Mercedes-Benz engaged in over the years.
Among the terms of the settlement, Mercedes is obligated to immediately pay out $120 million to the states, with $29.7 million held in suspension pending the completion of a consumer relief program, furthermore, Mercedes committed to making amends with affected vehicle owners by installing emissions modification software, coupled with extended warranties, and disbursing $2,000 restitution per impacted vehicle, ensuring compliance with advertising laws and ceasing any deceptive marketing techniques in the future. The emphasis on accountability and reformation of business practices by the company echoes the broader regulatory message, extending beyond Washington D.C., and reaching the extensive span of states involved in this litigation.
This settlement, a continuation of action taken against automotive giants like Volkswagen, Fiat Chrysler, and Bosch for similar emissions cheating scandals, signifies a broader regulatory effort to combat environmental violations in the auto industry; further details on the settlement agreement and the District's complaint filed in DC Superior Court can be viewed here.
