Alabama To Receive Nearly $5M As Part Of Settlement With Mercedes-Benz

TUSCALOOSA, AL — Alabama Attorney General Steve Marshall announced Monday that the state will receive nearly $5 million as part of a national settlement with Mercedes-Benz's manufacturing operations.

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Marshall joined a coalition of 50 attorneys general in a $149.6 million agreement with Mercedes-Benz USA and Mercedes-Benz Group AG, resolving allegations that the automaker violated consumer protection laws by marketing and selling diesel vehicles equipped with illegal emissions defeat devices.

Marshall said the settlement includes more than $200 million in potential consumer relief nationwide, with Alabama identifying 11,906 affected vehicles that were sold or registered in the state.

Under the terms of the deal, Alabama will receive $4,934,299.

“This settlement sends a clear message to consumers: they deserve honesty, and deceptive marketing won’t be tolerated,” Marshall said.

The multi-state investigation reportedly revealed that Mercedes installed software in more than 211,000 diesel cars and vans nationwide between 2008 and 2016 that allowed the vehicles to pass emissions tests while producing nitrogen oxide levels far above legal limits during normal use.

The German automaker, with a substantial manufacturing presence in Vance, simultaneously marketed its diesel models as environmentally friendly and compliant with emissions standards.

Marshall said the settlement requires Mercedes to install approved emissions modification software on eligible vehicles, provide extended warranties and pay $2,000 to participating owners.

The automaker must also cover all repair and program costs and comply with new reporting and marketing restrictions.

Marshall's office also said the investigation was led by Connecticut, Delaware and Maryland, with assistance from Alabama and several other states. It follows similar cases involving Volkswagen, Fiat Chrysler and Bosch in recent years.

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