Virginia Attorney General Jason Miyares announced today that the state is part of a coalition of 50 attorneys general that reached a $149.7 million settlement with Mercedes-Benz USA and Daimler AG. The settlement resolves allegations that the companies violated state laws by marketing and selling vehicles equipped with illegal emissions defeat devices.
The vehicles, sold nationwide between 2008 and 2016, included more than 211,000 diesel passenger cars and vans with software designed to cheat emissions tests. This software optimized emission controls during testing but reduced those controls during normal driving, allowing the vehicles to emit nitrogen oxides (NOx) far above legal limits. NOx is a harmful pollutant linked to respiratory illnesses and smog formation.
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According to the states, Mercedes-Benz used these defeat devices to meet design and performance goals such as improved fuel efficiency and lower maintenance costs—goals it could not achieve while complying with emissions standards. The company concealed the devices from regulators and consumers while marketing the vehicles as environmentally friendly and compliant with emissions laws.
Under the settlement, Mercedes-Benz USA and Daimler AG will pay $120 million to the states immediately. An additional $29.7 million will be suspended and may be waived if the companies complete a comprehensive consumer relief program. Virginia’s share of the settlement is $1,550,136.
The consumer relief program covers an estimated 39,565 vehicles in the U.S. that had not been repaired or removed from the road by August 1, 2023. Mercedes-Benz must cover the cost of installing approved emission modification software on these vehicles, provide an extended warranty to consumers, and pay $2,000 per affected vehicle.
The companies are also required to comply with ongoing reporting, reform their business practices, and refrain from any further deceptive marketing or sales practices related to diesel vehicle emissions.
This settlement follows previous agreements with Volkswagen, Fiat Chrysler, and Robert Bosch GmbH over similar emissions cheating software. Volkswagen settled for $570 million in 2016, Fiat Chrysler paid $72.5 million in 2019, and Bosch paid $98.7 million in 2019.
The multistate investigation and settlement were led by the attorneys general of Connecticut, Delaware, and Maryland, with assistance from Alabama, Georgia, New Jersey, New York, South Carolina, and Texas. The final agreement was joined by numerous other states and territories, including Virginia.