Mercedes-Benz will pay up to US$150 million in a settlement reached with nearly all US states over the use of software designed to cheat emissions tests in its diesel vehicles.
The announcement is the culmination of the Dieselgate scandal that has rocked the auto industry over the past 10 years and resulted in criminal investigations, lawsuits and regulatory action around the world. Automakers including Volkswagen and Mercedes have been accused of using software that made their cars appear less polluting during laboratory emissions tests.
“This was not a technical error or administrative failure. It was a lie and a deliberate effort to gain an undeserved competitive advantage while the public paid the price for the health and environmental consequences of their pollution,” she said. Kathy JenningsAttorney General of the State of Delaware.
How the software cheated the system
Mercedes-Benz has been accused of violating state environmental laws and regulations against unfair or deceptive trade practices. The settlement involved the attorneys general of all states except Arizona and California, which had previously reached their own agreements with the company. William TongConnecticut’s attorney general, said officials found “a strong dose of collusion within the industry” and “elements of antitrust activity” during the years-long investigation.
The problem was in the software used in the different models. The feds allege that from 2008 to 2016, Mercedes sold more than 211,000 vehicles across the U.S. equipped with software that allowed engines to run cleaner during emissions testing. However, once the vehicles were on the road in daily driving, the system would reduce emissions limits.
The software allowed the vehicles to exceed legal limits for emissions of nitrogen oxide, which increases the risk of respiratory disease in humans and contributes to smog. At the same time, according to The New York Times, the company advertised these vehicles as more efficient and environmentally friendly than gasoline cars.