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Justice Department Concludes Mercedes-Benz Emissions Investigation Without Pursuing Legal Action

Apr 27, 2024,12:40pm EDT

The Justice Department has wrapped up an eight-year investigation into Mercedes-Benz regarding diesel emissions without pursuing charges, as reported by multiple sources on Saturday. This development comes nearly four years after the German automaker settled separate allegations of emissions test cheating with a $1.5 billion agreement.

 

Key Facts:

  • Mercedes-Benz Group AG representatives confirmed to Bloomberg that the DOJ concluded its inquiry without filing charges, following an initial report by the German outlet Handelsblatt.
  • Handelsblatt notes uncertainty surrounding the reasons for the Justice Department’s decision to end the investigation, and inquiries made by Forbes to the department remain unanswered.
  • The investigation commenced in April 2016 when the DOJ requested Mercedes-Benz parent company Daimler to examine its certification and admissions process concerning exhaust emissions in the U.S. This request came in the wake of the “Dieselgate” scandal involving Volkswagen’s emissions cheating.
  • Mercedes-Benz representatives did not provide immediate responses to requests for comment from Forbes.

Key Background:

  • The investigation stemmed from a class action lawsuit alleging that certain Mercedes-Benz vehicles violated emissions standards. The automaker stated it would fully cooperate with the investigation and dismissed claims in the lawsuit as unfounded.
  • In September 2020, Daimler and Mercedes-Benz settled with regulators—the DOJ, Environmental Protection Agency (EPA), and California Air Resources Board (CARB)—for $1.5 billion to resolve allegations of emissions cheating. This settlement was related to separate civil complaints from CARB and the U.S., which accused Daimler of equipping over 250,000 diesel vans and cars sold from 2009 to 2016 with undisclosed auxiliary emission control devices and defeat devices. These devices allegedly allowed vehicles to pass emissions tests while emitting higher nitrogen oxide levels during regular driving.
  • The settlement included civil penalties, a nationwide recall, and a repair program, ultimately receiving approval from a federal judge in March of the following year.

Tangent:

  • On Friday, the National Highway Traffic Safety Administration (NHTSA) announced an investigation into Tesla’s handling of a recall involving more than 2 million vehicles equipped with the Autopilot system. Tesla initiated the recall in December to address a flaw in the Autopilot system.