Mercedes Pays $150M for Emissions Fraud

NEW YORK – Mercedes-Benz USA is shelling out a hefty $149,673,750 after being caught red-handed cheating on emissions tests and lying to consumers, New York Attorney General Letitia James announced today. The settlement, hammered out with a bipartisan coalition of 50 attorneys general, exposes years of deliberate deception that pumped excess diesel pollution into communities across the nation.

The investigation, spearheaded by Attorney General James and an eight-state team, revealed that Mercedes knowingly equipped hundreds of thousands of diesel vehicles with illegal software. This wasn’t a glitch; it was a calculated scheme to bypass emissions standards, mislead regulators, and ultimately, profit at the expense of public health. New York State will receive over $13.5 million from the settlement, earmarked for pollution mitigation efforts.

“Mercedes promised New Yorkers clean, green cars, but instead sold vehicles that polluted our air and put public health at risk,” James stated bluntly. “For nearly a decade, Mercedes misled regulators and consumers while its vehicles spewed toxic emissions into our communities. Today’s settlement holds Mercedes accountable, delivers millions of dollars to protect New York’s environment, and ensures that this company never again deceives the public about its emissions.”

The probe, launched in 2020 following a federal investigation, uncovered damning evidence. The OAG sifted through over 350,000 documents and grilled witnesses, revealing that Mercedes’ diesel vehicles weren’t just skirting the rules – they were flagrantly violating them. The illegal software masked true pollution levels during testing, while on the road, these vehicles emitted pollutants up to 30 or 40 times the legal limit. Mercedes essentially obtained certifications based on a lie.

But the deception didn’t stop there. Mercedes actively marketed these diesel vehicles as “clean” and “green,” boasting about “ultra-low emissions” and even claiming to convert pollutants into “pure, earth-friendly nitrogen and water.” The reality? These vehicles were dirty, and the company knew it. Between 2008 and 2017, over 200,000 of these rigged vehicles were sold, including more than 19,000 registered in New York.

The settlement isn’t just about fines. Mercedes will immediately pay $120 million to the coalition states, with New York receiving $13,530,088. Eligible vehicle owners and lessees who get the required emissions repairs will receive $2,000 payments. The company is also forced to implement sweeping reforms and submit to strict oversight to prevent future misconduct. Department of Environmental Conservation Commissioner Amanda Lefton hailed the agreement, stating it “advances a cleaner and healthier state for all New Yorkers” and “ensures accountability for bad actors.” This isn’t just about money; it’s about cleaning up a mess Mercedes created and holding them responsible for the damage they inflicted.