Archive · 22 Dec 2025
Mercedes-Benz Settles $149.6M Diesel Emissions Case
Mercedes-Benz has agreed to pay $149.6 million to settle a case with many US states.
They were accused of using special software in their diesel cars that made them seem less polluting during tests than they actually were.
The cars were emitting much more pollution than allowed when driven normally.
Mercedes will pay most of the money right away, and some will be reduced based on how many cars they fix or take back.
They also have to take steps to make sure this doesn't happen again.
This is similar to a bigger case they settled in 2020 for $2.2 billion.
The states started looking into Mercedes after another big car company, Volkswagen, had a similar problem a few years ago.
Mercedes-Benz agrees to $149.6 million settlement with 48 US states, Puerto Rico, and DC over diesel emissions cheating allegations.
Settlement includes $2,000 payments to eligible vehicle owners and lessees for required emissions repairs.
Mercedes must pay $120 million immediately, with $29.6 million suspended and reduced by $750 for each affected vehicle repaired, taken off the market, or bought back.
Allegations involve unlawful software that hid true pollution levels, emitting up to 30-40 times the legal limit during normal driving.
This follows a 2020 $2.2 billion settlement with the US government and vehicle owners over similar allegations.
- Who
- Mercedes-Benz and 48 US states, Puerto Rico, District of Columbia
- What
- Settlement over diesel emissions cheating allegations
- When
- Agreed in 2023, following 2020 investigation
- Where
- United States
- Why
- Allegations of unlawful software hiding true pollution levels
- Settlement Amount
- $149.6 million
- Affected Parties
- 48 US states, Puerto Rico, District of Columbia
- Compensation for Owners
- $2,000 per eligible vehicle
- Immediate Payment
- $120 million
- Suspended Payment
- $29.6 million (reduced by $750 per repaired/removed vehicle)
- Previous Settlement (2020)
- $2.2 billion
- Alleged Issue
- Unlawful software hiding true pollution levels
- Emissions Exceedance
- Up to 30-40 times legal limit