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Mercedes Fined $150M for Emission Cheating
23 Dec, 2025
Summary
- Mercedes-Benz will pay $149.6 million to settle emission cheating allegations.
- Vehicles were equipped with software to pass tests but pollute more.
- Settlement requires consumer relief and no deceptive marketing.
Mercedes-Benz USA and its parent company, Daimler AG, have agreed to a $149.6 million settlement to address claims of emissions cheating. The German automaker allegedly installed devices in over 211,000 diesel passenger cars and vans between 2008 and 2016. These devices purportedly allowed vehicles to pass emission tests while exceeding legal limits for nitrogen oxides during regular use.
The settlement, announced by a coalition of 50 attorneys general, is pending court approval. Daimler and Mercedes-Benz had previously agreed to a $1.5 billion settlement in 2020 with the U.S. government and California regulators over similar allegations. Mercedes maintains the accusations are unfounded.
The new agreement involves a $120 million payment to the states, with an additional $29 million suspended pending a consumer relief program. Owners of approximately 40,000 unrepaired vehicles may receive $2,000 each for installing emissions modification software and an extended warranty. Mercedes must also adhere to strict reporting and marketing guidelines.
