California Fines Mercedes-Benz $1.5 Billion for Emission Scandal

Giancarlo Perlas September 14, 2020

The aftermath of the controversial emission scandal involving Volkswagen, which is also known as “Dieselgate”, resulted in government regulators probing into other automakers for potential violations. On Monday, it was found out that Mercedes-Benz was using cheating software to manipulate emission figures too, and was subsequently fined $1.5 billion by the U.S. government and California State.

According to CBS News, the US Department of Justice, Environmental Protection Agency, and the California attorney general’s office found out that Daimler used a “defeat device software” to skirt around the emissions testing from 2009 to 2016. It was estimated that the company sold 250,000 cars and vans bearing the three-pointed star logo that didn’t comply with state and federal regulations during those periods.

Aside from the mentioned monetary sanctions, civil penalties are still pending in Washington state court. It requires Daimler to fix the vehicles affected by the emission scandal.

The justice department said that the parent of Mercedes should repair at least 85% of the affected cars within two years and at least 85% of the affected vans within three years. I should provide extended warranties on certain vehicle parts and conduct emissions tests on the fixed vehicles annually for the next five years on the affected autos as well.

In addition, Daimler is mixed up in a $700 million civil settlement in a class suit for emissions allegations. However, the company stated that the settlement of the case does not mean admitting to the liability arising from the accusations, and it does not require the carmaker to buy back the vehicles in question.

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About Author

Giancarlo Perlas

Giancarlo Perlas is an economist by profession with a career spanning nearly two decades. His professional journey has seen him assume vital roles in various government and private organizations, particularly in the blockchain and cryptocurrency sectors. Alongside his civic and corporate pursuits is his love for cars, particularly those made by Mercedes-Benz. In 2012, he found himself with like-minded individuals within BenzInsider. From then on, he used the platform as a way to share his passion with the automotive community. Follow his Facebook page at, X (formerly Twitter) @giancarloperlas, and IG @benzinsider. View all posts by Giancarlo Perlas →

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