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Mercedes Reaches $120 Million Settlement With US States Over Emissions Scandal
Published by Global Banking & Finance Review®
Posted on December 22, 2025
1 min readLast updated: January 20, 2026
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Mercedes-Benz settles for $120 million with US states over emissions software in Dieselgate case, resolving environmental and consumer claims.
Mercedes Agrees to $120 Million Settlement Over Emissions Scandal
BERLIN, Dec 22 (Reuters) - Mercedes-Benz said on Monday it will pay out $120 million to multiple U.S. states over emissions-rigging software in its vehicles, which the German carmaker says resolves the remaining Dieselgate proceedings against it in the U.S.
The company has agreed with U.S. state attorneys to resolve civil environmental and consumer protection claims related to its BlueTEC vehicles, which the company once marketed as "the world's cleanest and most advanced diesel".
Under the deal announced on Monday, it will also continue a programme to retrofit vehicles with approved emissions software, with a spokesperson saying the company expects additional costs from those measures to amount to tens of millions of dollars.
Bottom-line earnings are not impacted by this development, the spokesperson said, adding, "A sufficient provision has been made for the costs of the overall settlement."
(Reporting by Rachel More; editing by Matthias Williams)
Key Takeaways
- •Mercedes-Benz settles emissions claims for $120 million.
- •The settlement resolves Dieselgate proceedings in the U.S.
- •BlueTEC vehicles were marketed as clean diesel options.
- •Mercedes will retrofit vehicles with approved software.
- •The settlement will not impact bottom-line earnings.
Frequently Asked Questions about Mercedes reaches $120 million settlement with US states over emissions scandal
1What is emissions-rigging software?
Emissions-rigging software is a type of technology used in vehicles to manipulate emissions data, allowing cars to pass regulatory tests while actually emitting more pollutants than allowed.
2What is Dieselgate?
Dieselgate refers to the scandal involving several automakers, including Volkswagen and Mercedes-Benz, who were found to have used software to cheat on diesel emissions tests.
3What are BlueTEC vehicles?
BlueTEC vehicles are a line of diesel vehicles produced by Mercedes-Benz that were marketed as having advanced emissions control technology to reduce harmful emissions.
