Attorney General Formella Announces Nearly $150 Million Settlement with Mercedes-Benz and Daimler over Diesel Emissions Fraud

Concord, NH - Attorney General John M. Formella announces that New Hampshire, together with a bipartisan coalition of 49 other attorneys general, has reached a $149,673,750 settlement with Mercedes-Benz USA, LLC and Daimler AG for violating state laws prohibiting unfair or deceptive trade practices by marketing, selling and leasing vehicles equipped with illegal and undisclosed emissions defeat devices designed to circumvent emissions standards.

"Companies that choose to deceive regulators and consumers for profit will be held accountable," said Attorney General Formella. "This settlement sends a clear message that no automaker is above the law and that New Hampshire will continue to work with our state and federal partners to protect consumers, public health, and the integrity of our environmental laws."

Beginning in 2008 and continuing to 2016, the states allege Mercedes manufactured, marketed, advertised, and distributed nationwide more than 211,000 diesel passenger cars and vans equipped with software defeat devices that optimized emission controls during emissions tests, while reducing those controls outside of normal operations. The states allege the defeat devices enabled vehicles to far exceed many legal limits of nitrogen oxides (NOx) emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog. Mercedes allegedly engaged in this conduct to achieve design and performance goals, such as increased fuel efficiency and reduced maintenance, that it was unable to meet while complying with applicable emission standards. Mercedes concealed the existence of these defeat devices from state and federal regulators and the public. At the same time, Mercedes marketed the vehicles to consumers as "environmentally-friendly" and in compliance with applicable emissions regulations.

Today's settlement requires Mercedes-Benz USA and Daimler AG to pay $120 million to the states immediately upon the effective date of the settlement. An additional $29,673,750 will be suspended and potentially waived pending completion of a comprehensive consumer relief program.

New Hampshire will receive $364,602.18 through today's settlement. Approximately 1,264 impacted vehicles were sold or registered in New Hampshire.

The consumer relief program extends to the estimated 39,565 vehicles which as of August 1, 2023 had not been repaired or permanently removed from the road in the United States. Mercedes must bear the cost of installing approved emission modification software on each of the effected vehicles. The company must provide consumers with an extended warranty and will pay consumers $2,000 per subject vehicle.

The company must also comply with reporting requirements and reforms to their practices, including a prohibition on any further engagement in unfair or deceptive marketing or sale of diesel vehicles, misrepresentations regarding emissions and compliance.

Today's settlement follows similar settlements reached previously between the states and Volkswagen, Fiat Chrysler and German engineering company Robert Bosch GmbH over its development of the cheat software. Automaker Fiat Chrysler and its subsidiaries paid $72.5 million to the states in 2019. Bosch paid $98.7 million in 2019. Volkswagen reached a $570 million settlement with the states in 2016.

The New Hampshire Department of Justice Consumer Protection and Antitrust Bureau investigates unfair, deceptive, or unreasonable practices involving New Hampshire consumers. To file a complaint with the New Hampshire Department of Justice, call the Consumer Protection Hotline at 1-888-468-4454 or file a complaint online at https://www.doj.nh.gov/consumer/complaints.