Office of the
Illinois Attorney General
Kwame Raoul

Chicago – Attorney General Kwame Raoul today announced a $149.67 million multistate settlement with Mercedes-Benz USA, LLC and Mercedes-Benz Group AG for violating state laws by marketing, selling and leasing vehicles equipped with illegal and undisclosed emissions defeat devices designed to evade emissions standards. The settlement also includes more than $200 million in potential consumer relief.

“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,” Raoul said. “I am pleased this settlement will hold Mercedes accountable and provide relief for affected Illinois consumers.”

Beginning in 2008 and continuing until 2016, Raoul and the coalition allege Mercedes manufactured, marketed, advertised and distributed more than 211,000 diesel passenger cars and vans nationwide equipped with software defeat devices that optimized emission controls during emissions tests while reducing those controls outside of normal operations. The defeat devices enabled vehicles to far exceed legal limits of nitrogen oxides (NOx) emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog. Mercedes engaged in this conduct to achieve design and performance goals, such as increased fuel efficiency and reduced maintenance, that it was unable to meet while complying with applicable emission standards. Mercedes concealed the existence of these defeat devices from state and federal regulators and the public while at the same time marketing the vehicles to consumers as “environmentally-friendly” and in compliance with applicable emissions regulations.  

Today’s settlement requires Mercedes to pay $120 million to the states upon the effective date of the settlement. An additional $29,673,750 will be suspended and potentially waived pending completion of a comprehensive consumer relief program. Illinois will receive approximately $7.9 million through today’s settlement.

The consumer relief program, also part of today’s settlement, extends to the estimated 39,565 vehicles that had not been repaired or permanently removed from the road in the U.S. by August 1, 2023. Mercedes must bear the cost of installing approved emission modification software on each of the affected vehicles. The companies must provide participating consumers with an extended warranty and will pay consumers $2,000 per eligible vehicle.  

Under the agreement, Mercedes must also comply with reporting requirements, reform their practices and refrain from any further unfair or deceptive marketing or sale of diesel vehicles, including misrepresentations regarding emissions and compliance. 

Today’s settlement follows similar settlements reached previously between the states and Volkswagen, Fiat Chrysler and 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 and Volkswagen reached a $570 million settlement with the states in 2016.  

Joining Raoul in the bipartisan settlement are the attorneys general of Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.