Mercedes-Benz closes Dieselgate chapter in the US: Final settlement of $150 million

The final chapter in 'Dieselgate': Mercedes-Benz closes US litigation with final payment of $150 million

Nearly a decade after the emissions scandal that rocked the German auto industry, Mercedes-Benz has finally settled its legal battles in the United States. The Stuttgart-based automaker will pay about $150 million in a recent settlement, marking the end of an era dominated by stinging investigations and sanctions.

Agreement details: Who receives compensation?

The settlement was initialed with 48 U.S. states, plus Puerto Rico and the District of Columbia. The total amount of $149.6 million is strategically divided to cover both government penalties and direct compensation to consumers:

• Direct compensation: Eligible owners of affected diesel vehicles will receive $2,000 each, provided their cars have received mandatory emissions system repairs.
• Immediate payment: $120 million will be paid immediately to the authorities.
• Performance clause: The remaining $29.6 million represents a suspended amount, which will be reduced by $750 for each vehicle that Mercedes manages to repair, buy back or permanently remove from the market.

"Manipulation device" technology

American investigations have shown that Mercedes-Benz used undeclared software (defeat device) that allowed vehicles to pass laboratory tests by artificially reducing emissions.

Under real-world driving conditions, these vehicles emitted nitrogen oxides (NOx) at levels 30 to 40 times higher than legal limits, contributing significantly to air pollution.

This tactic targeted approximately 39,565 vehicles that, by August 2023, had not yet been repaired to environmental standards imposed by federal agencies (EPA and CARB).

A costly balance sheet for the German giant

While this $150 million installment seems substantial, it represents only a fraction of the total cost Mercedes has incurred in the U.S. In 2020, the company agreed to pay $2.2 billion to settle federal government investigations and class action lawsuits filed by more than 250,000 vehicle owners.

In addition to the financial penalties, Mercedes-Benz has committed to:

1. Install approved patch software on all affected vehicles.
2. Offers an extended warranty on emission system components.
3. Implement strict internal oversight protocols to prevent future misconduct.

Conclusion: An accelerated transition to electric

The end of the diesel scandal in the US allows the Mercedes-Benz group to focus its resources and attention on its “Electric First” strategy. After paying billions of dollars for past mistakes, the German manufacturer is now forcing the gradual elimination of internal combustion engines, trying to leave the negative image left by “Dieselgate” behind.