Indiana will receive a total of $12.7 million following a settlement with Mercedes-Benz over alleged unfair marketing and violations of emissions standards. According to FOX59, the automaker was accused of installing defeat devices in more than 200,000 diesel vehicles—software designed to pass emissions tests while allowing the cars to exceed environmental limits.
Attorney General Todd Rokita said Mercedes-Benz’ actions did not meet Indiana’s standards for business transparency. As per FWBusiness, the $12.7 million settlement is part of a $150 million national agreement, with Indiana receiving $4,765,500 and nearly $8 million designated for consumer restitution.
Of the affected vehicles, 16,521 were sold in Indiana, with up to $7,976,304 potentially allocated for consumer restitution. The settlement is part of a broader effort to repair or remove approximately 39,565 vehicles that had not been corrected as of August 2023, as reported by WLFI. Mercedes-Benz has also agreed to extend warranties and cover costs for installing approved emissions modification software.
The allegations against Mercedes-Benz follow previous industry cases in which automakers used software to make vehicles appear compliant with emissions standards only during testing. Similar issues affected companies like Volkswagen and Fiat Chrysler, which faced substantial financial penalties. Mercedes-Benz must also implement reforms to its marketing practices for diesel vehicles to ensure compliance with emissions standards.
