Mercedes-Benz said on Monday it has agreed to pay $120 million to several U.S. states to settle claims linked to emissions-manipulation software used in certain diesel vehicles. The German automaker said the agreement brings an end to the remaining Dieselgate-related cases against the company in the United States.
The settlement resolves civil environmental and consumer protection allegations raised by state attorneys concerning Mercedes-Benz’s BlueTEC diesel models, which were previously promoted by the company as among the cleanest and most advanced diesel vehicles on the market.
As part of the agreement, Mercedes-Benz will continue its program to retrofit affected vehicles with emissions-compliant software. A company spokesperson said the retrofit initiative is expected to result in additional costs running into the tens of millions of dollars.
The automaker said the settlement will not affect its bottom-line earnings, noting that it has already set aside sufficient provisions to cover the full cost of the agreement and related measures.
