• Mercedes-Benz reaches a $149.6 million settlement with U.S. states over diesel emissions.
• The automaker allegedly installed devices in vehicles to cheat emissions tests.
• Settlement includes $2,000 payments to eligible vehicle owners and compliance actions.

Mercedes-Benz USA and its parent company Daimler AG have finalized an agreement to pay $149.6 million to resolve allegations regarding its diesel emissions practices, as announced by a coalition of attorneys general representing 48 states, Puerto Rico, and the District of Columbia. The allegations stemmed from Mercedes allegedly installing undisclosed software in over 211,000 diesel vehicles that optimized emissions controls during tests but allowed the vehicles to emit significantly higher nitrogen oxides during normal operation, far exceeding legal limits, according to Reuters and CBS News.

Between 2008 and 2016, the automaker reportedly concealed these practices while marketing its diesel vehicles as "environmentally friendly" and compliant with regulatory standards. The settlement will provide $2,000 to eligible owners of the affected vehicles, including an extended warranty if they complete emissions repairs. Additionally, Mercedes is required to pay $120 million upfront with another payment of $29.6 million suspended pending compliance, according to India Times.

Mercedes-Benz's statement indicates that the company still considers the allegations unfounded but has made provisions for the settlement costs, which are aimed at resolving all remaining legal actions related to diesel emissions in the United States. This latest settlement follows a previous agreement in 2020 where Daimler AG and Mercedes-Benz USA paid $1.5 billion to U.S. government entities and California regulators concerning similar allegations. The current deal is subject to court approval, as cited by Reuters and CBS News.

The investigation into Mercedes was instigated by the broader Volkswagen emissions scandal, which had far-reaching repercussions for several global automakers, affecting public health and environmental policy. The coalition of attorneys general representing the affected states aims to enforce strict compliance and transparency requirements as part of this comprehensive resolution, according to India Times and CBS News.