Mercedes-Benz will pay nearly $150 million after a multistate investigation found the automaker used illegal software to cheat emissions tests and mislead consumers.
New York Attorney General Letitia James announced the settlement Dec. 22, saying Mercedes equipped hundreds of thousands of diesel vehicles with undisclosed emissions-cheating software that allowed the cars to pass government tests while polluting far above legal limits during normal driving.
The investigation found the vehicles emitted harmful pollutants at levels sometimes 30 to 40 times higher than allowed. Investigators said the software masked the true emissions during testing, enabling Mercedes to obtain certifications the vehicles did not actually qualify for.
Attorney General James co-led the bipartisan investigation with eight other attorneys general after a federal probe concluded. The coalition reviewed more than 350,000 documents and interviewed witnesses before reaching the settlement.
“Mercedes promised New Yorkers clean, green cars, but instead sold vehicles that polluted our air and put public health at risk,” James said.
Between 2008 and 2017, Mercedes sold more than 200,000 affected diesel vehicles nationwide, including more than 19,000 registered in New York. The company marketed the cars as “clean” and “ultra-low emissions,” claims investigators said were false.
Under the settlement, Mercedes will pay $149.7 million to the states. More than $13.5 million will go to New York to help fight air pollution. Mercedes must also provide $2,000 payments to eligible vehicle owners and lessees whose cars receive approved emissions repairs.
The agreement requires Mercedes to offer extended emissions warranties and to notify eligible owners about how to file claims. Vehicle owners must submit claims by Sept. 30, 2026.
In addition, Mercedes must implement sweeping reforms. The company is barred from selling diesel vehicles with emissions-cheating devices, from making misleading emissions claims, and from advertising diesel vehicles as clean or low-pollution unless the claims are accurate and supported.
Mercedes must also regularly report to state regulators on repairs, vehicle removals, or buybacks and faces additional penalties if it fails to comply.
State officials said the settlement holds the automaker accountable while directing significant funding toward reducing harmful emissions and protecting public health.
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