Pennsylvania will receive $6.6 million from a $149 million settlement with Mercedes-Benz USA after the manufacturer was found to have violated state laws related to emissions testing.
The settlement, announced by Attorney General Dave Sunday in partnership with a coalition of 50 attorneys general, comes after Mercedes-Benz allegedly equipped more than 200,000 diesel vehicles with defeat devices from 2008 to 2016. These devices falsely ensured that the cars met emissions standards during testing, while actual operations showed emissions far exceeding legal limits.
More than 10,500 of the affected vehicles were sold or registered in Pennsylvania, compounding the impact on local air quality. Attorney General Sunday highlighted the severity of the actions, stating, “This luxury-vehicle manufacturer cut corners to make their products more attractive to consumers, while blatantly lying about the vehicles achieving emissions standards.”
The settlement requires Mercedes-Benz USA to pay $120 million to the states when the settlement takes effect. In addition, up to $29,673,750 could be waived if the company successfully implements a comprehensive consumer relief program.
As part of the consumer relief program, Mercedes will pay $2,000 to each impacted vehicle owner. Currently, approximately 39,565 vehicles remain unaddressed with regard to emissions issues as of Aug. 1, 2021, necessitating installation of approved emission modification software.
Following this settlement, Mercedes must also comply with new reporting requirements and reform its business practices to avoid misleading marketing. The company is barred from further engagement in unfair practices relating to the sale of diesel vehicles.
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