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Similar to the VW "Dieselgate" scandal, it's a black eye for Benz.

January 20, 2026


Mercedes-Benz will pay a $150 million settlement for concealing emission-cheating devices on its cars and trucks. Consumers who owned one of the affected models will get $2,000 each.

In the settlement with 48states and two U.S. territories, prosecutors said that Mercedes manufactured, marketed,advertisedand distributed nationwide more than 211,000 diesel passenger cars and vans equipped with software defeat devices thatoptimizedemission controls during emissions tests, while reducing those controls outside of normal operations.

The states allege the defeat devices enabled vehicles to farexceedmanylegallimits of nitrogen oxides (NOx) emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog. Mercedes allegedly engaged in this conduct to achieve design and performance goals, such as increased fuel efficiency and reduced maintenance, that it was unable to meet whilecomplying withapplicable emission standards.

Mercedes concealed the existence of these defeat devices from state and federal regulators and the public. At the same time, Mercedes marketed the vehicles to consumers as environmentally-friendly and in compliance with applicable emissions regulations.

Time to pay up

Thesettlement requires Mercedes-Benz to pay $120 million to the statesimmediatelyupon the effective date of the settlement. Anadditional$29,673,750 will be suspended and potentially waived pending completion of a comprehensive consumer relief program.

The consumer relief program extends to the estimated 39,565 vehicles,which as of Aug.1, 2023,had not been repaired or permanently removed from the road in the United States. Mercedes must bear the cost of installing approved emission modification software on each of theaffected vehicles. The company must provide consumers with an extended warranty and will pay consumers $2,000 per subject vehicle.

The company must alsocomply withreporting requirements and reforms toitspractices, including a prohibition on any further engagement in unfair or deceptive marketing or sale of diesel vehicles, misrepresentationsregardingemissions and compliance.

Todays settlement follows similar settlements reached previously between the states and Volkswagen, FiatChryslerand German engineering company Robert Bosch GmbH over its development of the cheat software. Automaker Fiat Chrysler and its subsidiaries paid $72.5 million to the states in 2019. Bosch paid $98.7 million in 2019. Volkswagen reached a $570 million settlement with the states in 2016.

Read the complainthereand the judgementhere.