MADISON, Wis. – Attorney General Josh Kaul announced that Wisconsin has joined
a coalition of 50 attorneys general in reaching a $149,673,750 settlement with
Mercedes-Benz AG (together, “Mercedes”) arising from claims that the companies
marketed, sold and leased vehicles equipped with illegal and undisclosed emissions
defeat devices designed to circumvent emissions standards. The settlement also
includes more than $200 million in potential consumer relief.
The consumer relief program extends to the estimated 39,565 vehicles that had not
been repaired or permanently removed from the road in the United States by August
1, 2023. Mercedes also must provide participating consumers with an extended
warranty and will pay consumers $2,000 per subject vehicle.
As part of the settlement, Mercedes will send an approved notice to eligible owners
and lessees of eligible vehicles with information on steps they can take to receive the
available relief.
The companies must also comply with reporting requirements, reform their practices,
and refrain from any further unfair or deceptive marketing or sale of diesel vehicles,
including misrepresentations regarding emissions and compliance.
“Deceiving the public about vehicle emissions is unfair to consumers and harmful to
the environment,” said Attorney General Kaul. “This settlement brings
accountability and relief for consumers.”
DOJ Communications Office DOJCommunications@doj.state.wi.us (608) 266-1220
Beginning in 2008 and continuing to 2016, Wisconsin and the coalition allege that
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 during normal operations. The defeat devices enabled vehicles to far exceed
legal limits of nitrogen oxides (NOx) emissions, a harmful pollutant that causes
respiratory illness and contributes to the formation of smog. According to the
allegations, Mercedes engaged in this conduct to achieve design and performance
goals, such as increased fuel efficiency and reduced maintenance, which it was unable
to meet while complying with applicable emission standards. Mercedes allegedly
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 as compliant with applicable emissions regulations.
Today’s settlement requires Mercedes to pay $120 million to the jurisdictions 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.
Wisconsin’s portion of the settlement is $630,850.
Today’s settlement follows similar settlements reached previously by Wisconsin and
other states with 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.
Joining Attorney General Kaul in this multistate settlement are the attorneys
general of Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, the District
of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas,
Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey,
New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon,
Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah,
Vermont, Virginia, Washington, West Virginia, Wyoming, and Puerto Rico.
