TSLA370.59016.48%
GM78.270-1.04%
F12.100-0.17%
RIVN14.300-0.46%
CYD31.950-0.31%
HMC31.350-0.27%
TM181.490-1.85%
CVNA63.7800.74%
PAG204.0301.19%
LAD307.7701.7%
AN162.460-2.53%
GPI249.840-6.86%
ABG175.880-2.59%
SAH62.830-0.93%
TSLA370.59016.48%
GM78.270-1.04%
F12.100-0.17%
RIVN14.300-0.46%
CYD31.950-0.31%
HMC31.350-0.27%
TM181.490-1.85%
CVNA63.7800.74%
PAG204.0301.19%
LAD307.7701.7%
AN162.460-2.53%
GPI249.840-6.86%
ABG175.880-2.59%
SAH62.830-0.93%
TSLA370.59016.48%
GM78.270-1.04%
F12.100-0.17%
RIVN14.300-0.46%
CYD31.950-0.31%
HMC31.350-0.27%
TM181.490-1.85%
CVNA63.7800.74%
PAG204.0301.19%
LAD307.7701.7%
AN162.460-2.53%
GPI249.840-6.86%
ABG175.880-2.59%
SAH62.830-0.93%

Mercedes-Benz reaches $149.6M settlement with U.S. states over diesel emissions claims

The agreement resolves a multistate investigation into alleged emissions cheating and effectively closes the automaker’s U.S. dieselgate legal exposure.
Mercedes-Benz and Starbucks have announced a collaboration to install fast electric vehicle chargers at 100 Starbucks locations.

On the Dash:

  • Mercedes-Benz agreed to a $149.6 million multistate settlement over diesel emissions cheating, effectively closing its remaining U.S. dieselgate legal exposure.
  • The deal covers nearly 39,565 unrepaired vehicles and includes $2,000 payments, software fixes, and extended warranties for affected owners.
  • Mercedes said the settlement will not impact earnings and agreed to new compliance and oversight measures to prevent future violations.

Mercedes-Benz has agreed to pay $149.6 million to resolve a multistate investigation into allegations that the automaker used unlawful software to cheat diesel emissions tests, a settlement that state officials say effectively closes the company’s U.S. legal exposure tied to the dieselgate scandal.

New York Attorney General Letitia James announced Monday that the agreement covers 48 U.S. states, Puerto Rico, and the District of Columbia. Mercedes said the settlement ends its long-running diesel emissions disputes in the United States, stemming from an investigation launched after Volkswagen’s 2015 emissions scandal.

Under the settlement, Mercedes will provide $2,000 payments to eligible owners and lessees whose vehicles received required emissions repairs. The agreement applies to an estimated 39,565 vehicles in the U.S. that had not been repaired or permanently removed from the road by August 2023. Mercedes will also pay for the installation of approved emissions-modification software, provide extended warranties to participating consumers, and implement additional compliance and oversight measures to prevent future violations.

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox. 

The financial terms include an immediate $120 million payment to the states. An additional $29.6 million is suspended and will be reduced by $750 for each affected vehicle Mercedes repairs, removes from service, or buys back. The settlement remains subject to final court approval.

State officials allege that, under real-world driving conditions, affected vehicles emitted up to 30 to 40 times the legal pollution limits. Mercedes said the settlement will not affect its bottom-line earnings, noting that sufficient provisions have already been made to cover the costs.

The agreement builds on earlier enforcement actions. In 2020, Mercedes agreed to pay $2.2 billion to resolve a separate U.S. government investigation and claims from about 250,000 vehicle owners. While the U.S. settlement closes a major chapter, Mercedes continues to face potential legal exposure overseas, including a mass lawsuit in England.

Read More
More from Industry News
GM keeps U.S. sales crown in Q3, but Toyota's hybrid surge is closing in fast

GM keeps U.S. sales crown in Q3, but Toyota’s hybrid surge is closing in fast

- October 2, 2026
On the Dash: GM sold 670,974 vehicles in Q3, down 5.5%, and its EV sales fell about 62%. Toyota's electrified sales rose 28.5% and now make up 57.4% of its...
Stellantis, Honda post Q3 sales results as hybrids and key models drive growth

Stellantis, Honda post Q3 sales results as hybrids and key models drive growth

- October 2, 2026
On the Dash: Stellantis sales rose 3% year-to-date, with Ram, Jeep, Chrysler and Dodge models contributing to third-quarter gains. American Honda sales increased 4.7% year to date, with September sales...
https://pressroom.toyota.com/toyota-battery-center-of-north-america-unveiled-at-michigan-rd-campus/

Toyota opens $50 million Michigan battery research center

- October 2, 2026
On the Dash: Toyota opened a 30,000-square-foot battery research center in Saline Township, Michigan, expanding its North American battery development capabilities. The facility will support battery technology across EVs, hybrids,...
Remembering Jim O'Connor, the Ford executive who never lost sight of retail

Remembering Jim O’Connor, the Ford executive who never lost sight of retail

- October 2, 2026
The automotive industry is mourning the passing of former Ford executive Jim O'Connor. O'Connor died Sept. 25 at age 83. His career at Ford Motor Company spanned more than four...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.