Attorney General Kwame Raoul has announced that Illinois will join a $149.67 million multistate settlement with Mercedes-Benz USA, LLC and Mercedes-Benz Group AG over the use of illegal emissions defeat devices in certain diesel vehicles. The agreement also provides for more than $200 million in potential consumer relief.
According to Attorney General Raoul, “Mercedes’ deceptive use of software defeat devices misled consumers into thinking their vehicles were more environmentally friendly than they actually were while also circumventing laws meant to limit dangerous nitrogen oxide emissions. I am pleased this settlement will hold Mercedes accountable and provide relief for affected Illinois consumers.”
The coalition of states alleges that from 2008 through 2016, Mercedes manufactured and sold over 211,000 diesel cars and vans nationwide equipped with software designed to pass emissions tests but allowed higher pollution levels during normal operation. This practice led vehicles to emit nitrogen oxides above legal limits. Nitrogen oxides are pollutants linked to respiratory illnesses and smog formation.
Under the terms of the settlement, Mercedes will pay $120 million to participating states once the agreement takes effect. An additional $29,673,750 could be waived if a comprehensive consumer relief program is completed as required by the settlement. Illinois expects to receive about $7.9 million from its share.
The consumer relief portion covers an estimated 39,565 vehicles in the United States that had not been repaired or permanently removed from service by August 1, 2023. Mercedes is responsible for installing approved emission modification software on these vehicles at no cost to owners. Consumers who participate will receive an extended warranty and a payment of $2,000 per eligible vehicle.
In addition to financial penalties and consumer compensation, the agreement requires Mercedes-Benz companies to comply with reporting requirements, change their business practices related to marketing diesel vehicles, and avoid further misleading representations regarding emissions or regulatory compliance.
This action follows previous settlements reached by states with other automakers over similar conduct: Volkswagen agreed in 2016 to pay $570 million; Fiat Chrysler paid $72.5 million in 2019; Bosch paid $98.7 million in 2019.
The bipartisan settlement includes attorneys general from across the country as well as Washington D.C., Puerto Rico, and several U.S. territories.
