Attorney General Phil Weiser announces $149.6M settlement with Mercedes-Benz and Daimler in emissions cheating case

Dec. 22, 2025 (DENVER) — Attorney General Phil Weiser today joined a bipartisan coalition of 50 attorneys general announcing a $149,673,750 settlement with Mercedes-Benz USA and Daimler AG for violating state laws prohibiting unfair or deceptive trade practices by marketing, selling and leasing vehicles equipped with illegal and undisclosed emissions defeat devices designed to circumvent emissions standards. The settlement also includes more than $200 million in potential consumer relief.

“Mercedes-Benz and Daimler deceived consumers and undermined important clean air protections by installing defeat devices in their vehicles. Consumers thought they were driving low pollution vehicles and meeting emissions tests, all the while the hidden defeat software allowed their vehicles to emit higher levels of harmful pollutants during normal driving,” Attorney General Weiser said. “Today’s settlement sends a strong message that we will continue to hold polluters accountable for their irresponsible conduct.”

Beginning in 2008 and continuing to 2016, the states allege Mercedes manufactured, marketed, advertised, and distributed nationwide more than 211,000 diesel passenger cars and vans equipped with software defeat devices that optimized emission controls during emissions tests, while reducing those controls outside of normal operations. The defeat devices enabled vehicles to far exceed legal limits of nitrogen oxides emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog.

Mercedes engaged in this conduct to achieve design and performance goals, such as increased fuel efficiency and reduced maintenance, that it was unable to meet while complying with applicable emission standards. Mercedes concealed the existence of these defeat devices from state and federal regulators and the public. At the same time, Mercedes marketed the vehicles to consumers as “environmentally-friendly” and in compliance with applicable emissions regulations.

Today’s settlement requires Mercedes-Benz USA and Daimler AG to pay $120 million to the states upon the effective date of the settlement. An additional $29,673,750 will be suspended and potentially waived pending completion of a comprehensive consumer relief program.
Colorado will receive $975,253 from today’s settlement to be used for consumer fraud or antitrust enforcement, consumer education, or efforts to advance the public welfare.

The consumer relief program extends to the estimated 39,565 vehicles that had not been repaired or permanently removed from the road in the United States by August 1, 2023, which includes 3,181 vehicles sold in Colorado. Mercedes must bear the cost of installing approved emission modification software on each of the affected vehicles. The companies must provide participating consumers with an extended warranty and pay consumers $2,000 per subject vehicle.

The companies must also comply with reporting requirements, reform their practices, and refrain from including a prohibition on any further unfair or deceptive marketing or sale of diesel vehicles, including misrepresentations regarding emissions and compliance.

Today’s settlement follows similar settlements reached previously between the states and Volkswagen, Fiat Chrysler and German engineering company Robert Bosch GmbH over its development of the cheat software. Automaker Fiat Chrysler and its subsidiaries paid $72.5 million to the states in 2019. Bosch paid $98.7 million in 2019. Volkswagen reached a $570 million settlement with the states in 2016.

The final settlement was joined by Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and Puerto Rico.

Read a copy of the complaint (PDF).

Read a copy of the executed consent judgment (PDF).

###

Media Contact:
Lawrence Pacheco
Chief Communications Officer
(720) 508-6553 office
lawrence.pacheco@coag.gov