PORTLAND, Ore. (CURRENCY) – Oregon Attorney General Dan Rayfield announced Monday that a nearly $150 million settlement has been reached with Mercedes-Benz and Daimler over emissions fraud.
The settlement was reached by a coalition of 50 attorneys general and Mercedes-Benz and Daimler after the companies were accused of violating state laws that prohibit deceptive business practices by selling, marketing or leasing vehicles with illegal emissions loss devices designed to circumvent emissions standards.
Under the settlement, the companies must provide consumers with an extended warranty and pay consumers $2,000 for each affected vehicle, the Attorney General’s Office said, noting that Mercedes must also pay a $120 million settlement to the states. Another $29 million will be suspended and potentially waived until a consumer assistance program is completed, officials said, adding that under the settlement, Oregon will see more than $2.5 million to settle environmental claims.
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“Oregonians expect the cars they buy to be safe, legal, and honestly marketed,” said Attorney General Rayfield. “When a company cuts corners and hides the truth, people pay the price — in their health, their wallets, and the air we all breathe. This settlement holds Mercedes and Daimler accountable, puts money back in the pockets of affected Oregon drivers, and helps protect our communities from pollution that should never have been there in the first place.”
From 2008 to 2016, the states allege that Mercedes manufactured, marketed and distributed more than 211,000 diesel passenger cars and vans with software that bypassed optimized emissions controls during emissions tests, the attorneys general explained.
That device allowed vehicles to exceed legal emissions limits for nitrogen oxides, a harmful pollutant that causes respiratory disease and contributes to the formation of smog, according to the attorney general.
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The states claimed that Mercedes engaged in the alleged emissions fraud to achieve design and performance goals – such as increased fuel efficiency and reduced maintenance – because the company could not meet these goals while complying with emissions standards.
According to the attorney general, Mercedes hid the existence of these devices from state and federal regulators and the public while the vehicles are marketed as “environmentally friendly”, and in compliance with emission standards.
Officials explained that the consumer assistance program extends to the estimated 39,000 vehicles that have not been repaired or taken off the road in the United States until August 1, 2023.
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There were more than 4,000 affected vehicles in Oregon, according to Rayfield, noting that Mercedes must pay for the installation of approved emission software on each affected vehicle.
KOIN 6 News reached out to Mercedes-Benz and Daimler. This story will be updated if we receive a response.
Along with Oregon, the settlement was also joined by Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, New Jersey, North Dakota, New Hampshire, New Jersey, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and Puerto Rico.
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This settlement comes after similar agreements were made between the states and Volkswagen, Fiat Chrysler and the German engineering company Robert Bosch GmBH for the development of the cheating software, officials note.
In those settlements, officials note that Fiat Chrysler and its subsidiaries paid $72.5 million to the states in 2019, while Bosch paid $98.7 million in 2019 and Volkswagen reached a $570 million settlement with the states in 2016.
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