Mercedes-Benz to pay up to settle emissions scandal

Core Viewpoint - Mercedes-Benz USA and Daimler AG have agreed to pay nearly $150 million to settle allegations of installing devices in vehicles to pass emission tests [1][4]. Group 1: Allegations and Settlement Details - The automaker allegedly equipped over 211,000 diesel vehicles with software that optimized emission controls during tests but reduced them during normal operations [1][3]. - The settlement includes a payment of $120 million, with an additional $29 million potentially waived pending the completion of a consumer relief program [5]. - The coalition of attorney generals involved in the settlement includes fifty members, excluding California [4]. Group 2: Environmental Impact and Compliance - The devices allowed vehicles to exceed legal limits for nitrogen oxides, contributing to respiratory illnesses and smog [2]. - Mercedes-Benz marketed its vehicles as "environmentally friendly" while concealing the devices from regulators and the public [3][8]. - The settlement requires Mercedes to comply with reporting requirements and avoid further deceptive marketing practices [6]. Group 3: Historical Context - In 2020, Daimler AG and Mercedes-Benz USA agreed to pay $1.5 billion to resolve previous emissions cheating allegations [4]. - Volkswagen previously paid $2.8 billion to settle a criminal case related to emissions cheating, highlighting industry-wide issues [7].