Mercedes-Benz closes remaining U.S. diesel emissions proceedings

Mercedes-Benz announced settlements with U.S. states to resolve remaining diesel emissions cases, covering BlueTEC vehicles and consumer protection claims. Read details.

Mercedes-Benz has reached agreements with several U.S. state attorneys general to resolve the remaining civil proceedings related to diesel emissions. The settlements address environmental and consumer protection claims concerning BlueTEC II diesel passenger cars and vans from model years 2009 to 2016.

Subject to final court approval, the agreements cover claims brought by the remaining U.S. states, as well as the District of Columbia and Puerto Rico. With these steps, Mercedes-Benz effectively brings to a close all material diesel-related legal proceedings in the United States. The company stated that the settlements help avoid lengthy and cost-intensive litigation, while continuing to deny the allegations and any legal liability.

Under the multistate settlement, Mercedes-Benz agreed to pay an initial amount of USD 120 million to the participating states. The total value of the agreement may reach up to USD 149.6 million, with a portion of that amount subject to reduction depending on how many affected vehicles are repaired, bought back, or permanently removed from service. In addition, the company will implement an Approved Emission Modification Installation Incentive Program to encourage further emissions-related updates.

Approved Emission Modifications (AEM) have been available since 2021 following earlier settlements with U.S. authorities. According to Mercedes-Benz, more than 85% of affected passenger cars and Sprinter vans have already received the updates. The new incentive program is designed to increase participation among remaining owners and includes consumer payments of up to USD 2,000 per vehicle in certain cases, along with extended warranties.

The latest agreements form part of a broader timeline of diesel-related resolutions in the United States. Mercedes-Benz settled civil claims with federal and California regulators in 2020, reached a similar agreement with Arizona in 2022, and saw the U.S. Department of Justice close its criminal investigation in 2024 without filing charges.

With the final state-level cases now nearing completion, Mercedes-Benz appears to be drawing a line under its diesel emissions disputes in the U.S. market. For the wider automotive industry, the case underscores how environmental compliance and software transparency can remain under regulatory scrutiny long after vehicles have entered service.