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by ERIN PARROTT
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South Carolina attorney general Alan Wilson announced a nearly $150 million multi-state settlement with Mercedes-Benz USA and its parent company, Daimler AG, resolving allegations that the automaker used illegal software to evade emissions standards in diesel vehicles sold nationwide.
The settlement – totaling $149,673,750 – stems from allegations that Mercedes equipped more than 211,000 diesel passenger cars and vans sold between 2008 and 2016 with undisclosed “defeat devices” designed to manipulate emissions testing results.
According to the states, the software optimized emissions controls during testing while allowing vehicles to emit far higher levels of nitrogen oxides (NOx) – harmful pollutants linked to respiratory illness and the formation of smog – are during normal driving conditions.
“Today’s settlement is a win for South Carolina,” Wilson said in a statement. “This car manufacturer circumvented rules to meet its own goals while posing serious potential harm to our citizens.”
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Investigators alleged Mercedes deployed the software to achieve performance goals – including improved fuel efficiency and reduced maintenance costs – that could not be met while complying with state and federal emissions regulations. The company was also accused of concealing the devices from regulators and consumers while marketing the vehicles as environmentally friendly and emissions-compliant.
Under the agreement, Mercedes-Benz USA and Daimler will pay $120 million immediately, with an additional $29.7 million suspended and potentially waived if the companies complete a comprehensive consumer relief program.
South Carolina is slated to receive $2,024,981 from the settlement. State officials estimate that approximately 1,820 impacted vehicles were sold or registered in South Carolina.
The consumer relief program applies to an estimated 39,565 vehicles nationwide that had not been repaired or permanently removed from the road as of August 1, 2023. Mercedes is required to install approved emissions-modification software at no cost, provide extended warranties, and pay consumers $2,000 per affected vehicle.
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The settlement also mandated reporting requirements and reforms to Mercedes’ business practices, including prohibitions on deceptive marketing and misrepresentations regarding emissions compliance.
The agreement follows similar multi-state settlements involving other automakers and suppliers. Volkswagen reached a $570 million settlement with states in 2016, while Fiat Chrysler paid $72.5 million in 2019. German engineering firm Robert Bosch GmbH agreed to pay $98.7 million that same year for its role in developing emissions-cheating software.
Attorneys general from fifty states and territories, including South Carolina, joined the settlement.
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ABOUT THE AUTHOR…
Erin Parrott is a Greenville, S.C. native who graduated from the University of South Carolina in 2025 with a bachelor degree in broadcast journalism. Got feedback or a tip for Erin? Email her here.
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