South Carolina Attorney General Alan Wilson, alongside a coalition of 50 attorneys general, has finalized a $149.6 million settlement with Mercedes-Benz USA. The agreement addresses allegations that the automaker used illegal “defeat devices” to bypass emissions standards in diesel vehicles.
The investigation revealed that between 2008 and 2016, Mercedes distributed over 211,000 diesel cars and vans equipped with software designed to cheat emissions tests. The software optimized controls during laboratory testing but reduced them during normal driving, allowing vehicles to emit nitrogen oxides (NOx) far above legal limits.
Despite these hidden devices, Mercedes marketed the vehicles as environmentally friendly “BlueTEC” technology to meet performance goals like fuel efficiency that were otherwise unattainable under environmental regulations.
South Carolina is set to receive $2,024,981 from the settlement, with roughly 1,820 affected vehicles registered in the state. Nationwide, the agreement establishes a consumer relief program for nearly 40,000 unrepaired vehicles.
Key benefits for eligible owners include:
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$2,000 Direct Payments: Eligible consumers will receive a cash payment per vehicle.
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Free Repairs: Mercedes must cover all costs for installing approved emissions modification software.
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Extended Warranties: A new warranty will be provided for all vehicles receiving the software fix.
Beyond the payout, Mercedes-Benz must implement strict reforms, including a prohibition on deceptive marketing and new reporting requirements regarding emissions compliance. This settlement follows previous legal actions against Volkswagen, Fiat Chrysler, and Bosch for similar “cheat software” practices.
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