Attorney General Jason Miyares has announced that Virginia will receive over $1.5 million as part of a nearly $150 million settlement with Mercedes-Benz USA and Daimler AG. The agreement, reached by a coalition of 50 attorneys general, addresses allegations that the automakers violated state laws against unfair or deceptive trade practices.
According to the settlement, Mercedes-Benz manufactured and sold more than 211,000 diesel vehicles between 2008 and 2016 that were equipped with illegal emissions defeat devices. These devices allowed vehicles to meet emissions standards during testing but emitted higher levels of nitrogen oxides (NOx) during regular use. NOx is known to contribute to respiratory illness and smog.
The states allege that Mercedes concealed the existence of these devices from regulators and consumers while marketing their vehicles as “environmentally-friendly” and compliant with emissions regulations.
Under the terms of the settlement, Mercedes-Benz USA and Daimler AG will pay $120 million immediately to the states. An additional $29.7 million may be waived if the companies complete a consumer relief program. Virginia’s share amounts to $1,550,136.
The consumer relief program covers approximately 39,565 vehicles in the United States that had not been repaired or permanently removed from service by August 1, 2023. Mercedes must install approved emission modification software at its own expense for each affected vehicle. Participating consumers will receive an extended warranty and a payment of $2,000 per vehicle.
The companies are also required to comply with new reporting requirements, reform business practices related to diesel vehicle marketing and sales, and refrain from making false statements about emissions compliance in future advertising.
This resolution follows similar settlements previously reached between states and other automakers involved in emissions violations: Volkswagen settled for $570 million in 2016; Fiat Chrysler paid $72.5 million in 2019; Bosch paid $98.7 million in 2019.
The multistate investigation was led by attorneys general from Connecticut, Delaware, and Maryland with assistance from several other states including Alabama, Georgia, New Jersey, New York, South Carolina, Texas as well as many others across the country.
