Mercedes Reaches $120 Million Settlement with US States Over Emissions Scandal

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 program 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.

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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)