22 Dec Mercedes-Benz settles diesel emissions proceedings in the United States
(Oilandgaspress) Mercedes-Benz Group AG and its subsidiary Mercedes-Benz USA LLC (MBUSA) have reached agreement with multiple U.S. state attorneys general to resolve civil environmental and consumer protection claims related to the emission control systems of Model Year 2009 to 2016 BlueTEC II diesel passenger cars and vans in the involved U.S. states. The settlements are subject to final approval by the relevant courts.
With the settlements, Mercedes-Benz is taking another important step toward resolution of various diesel proceedings. The company is thus resolving all material remaining legal proceedings related to diesel emissions in the U.S. Through these settlements, Mercedes-Benz avoids lengthy and cost-intensive court actions. While the company has cooperated fully with the state attorneys general, Mercedes-Benz continues to regard the accusations made as unfounded and denies any liability to the U.S. states or otherwise.
The company has made sufficient provisions for the expected total costs of the multistate group settlements. To resolve this matter, Mercedes-Benz agreed to pay an initial total settlement amount of USD 120 million to the multistate group and will undertake an Approved Emission Modification Installation Incentive Program. Approved Emission Modifications (AEM) have been available since 2021 as a result of the 2020 settlement with U.S. authorities. As per the 2020 agreement, Mercedes-Benz has already updated more than 85% of passenger cars and Sprinter vans. The new incentive program is intended to promote additional AEM installations, above and beyond what is required by the 2020 settlement, providing a benefit to both the states and consumers.
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