Attorney General Brenna Bird Announces Multi-State Settlement with Mercedes-Benz USA and Daimler AG

DES MOINES–Attorney General Brenna Bird today joined a coalition of 50 attorneys general announcing a $149,673,750 settlement with Mercedes-Benz USA and Daimler AG for violating state laws prohibiting unfair or deceptive trade practices by marketing, selling, and leasing vehicles equipped with illegal and undisclosed emissions defeat devices.  

The states allege that more than 211,000 diesel passenger vehicles were equipped with the undisclosed emissions defeat devices from 2008 to 2016.  Mercedes allegedly engaged in this conduct to achieve design and performance goals, such as increased fuel efficiency and reduced maintenance, that it would otherwise not be able to meet without the devices when attempting to comply with applicable emission standards.  Mercedes hid the existence of the defeat devices from state and federal regulators and from Iowans purchasing the diesel vehicles. 

“Iowans deserve the truth when buying a vehicle,” said Attorney General Bird. “Software and cheat devices that can affect important issues like miles-per-gallon and maintenance should not be hidden so that Iowans can weigh the true value of the vehicle they want to purchase.  I am happy today’s settlement is returning money to Iowans’ pockets along with providing warranty extensions.” 

Mercedes-Benz USA and Daimler AG have agreed to pay $120 million to the states on the effective date of the settlement. An additional $29,673,750 will be suspended and potentially waived pending completion of a consumer relief program that extends to the estimated 39,565 vehicles that had not been repaired or permanently removed from the road by August 1, 2023. The consumer relief program provides:  

Iowa was involved in similar multi-state settlements with Volkswagen, Fiat Chrysler and German engineering company Robert Bosch GmbH.  Iowa will receive $3,130,271 through today’s settlement to be deposited in a state fund for future consumer litigation or education purposes.  

Iowa joined the settlement that was co-led by Connecticut, Delaware, and Maryland along with Alabama, Georgia, New Jersey, New York, South Carolina, and Texas.  The final settlement was also joined by Alaska, Arkansas, Colorado, the District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and Puerto Rico. 

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For More Information:

Jen Green 

jen.green@ag.iowa.gov