Daimler AG/Mercedes Benz caught cheating on vehicle emission controls, fined $1.5 billion

It doesn't pay to cheat on air pollution emission controls on vehicles. Volkswagen, Audi, and Porsche found that out a couple of years ago. Now Daimler Ag has also learned the hard way that you don't program emission controls on your cars and vans to only work when the government is testing them and to turn the controls off during normal driving.

Mercedes-Benz E350 sedan

Photo Credit: Tokumeigakarinoaoshima / CC0

Under two consent decrees reached by the corporate giant with the United States Environmental Protection Agency (USEPA), the U.S. Department of Justice (DOJ), and the California Air Resources Board (CARB), fines and mitigations totaling nearly $1.5 billion dollars must be paid by the company.

Approximately $286 million from the two consent decrees will go to California.

Testing by CARB's testing laboratoy in El Monte, CA, and the National Vehicle and Fuels Emissions Laboratory in Michigan found that from 2009 - 2016, the company purposely designed several Mercedes-Benz diesel cars, SUVs, and Sprinter vans to operate on-board air pollution control systems only when the vehicles "sensed" they were being tested for compliance. When testing was not being done, the controls were bypassed, resulting in illegal emissions into the atmosphere.

Daimler AG must fix 85% of all vehicles that were designed in this manner such that they will now be in compliance at no charge to those people who bought or leased them. The cars and SUVs must be repaired within 2 years and the vans within 3 years. Additionally, extended warranties covering all updated software and hardware must be issued and the company must test all repaired vehicles every year for the next 5 years. Failure to do any of the above will result in additional fines.

As an additional mitigation, Daimler must also provide offsets for excess NOx emissions by replacing 15 old locomotive engines with newer, less polluting ones.

“The message we are sending today is clear. We will enforce the law. We will protect the environment and public health. And if you try to cheat the system and mislead the public, you will be caught,” said EPA Administrator Andrew Wheeler. “Those that violate public trust in pursuit of profits will forfeit both.”

“By requiring Daimler to pay a steep penalty, fix its vehicles free of charge, and offset the pollution they caused, today’s settlement again demonstrates our commitment to enforcing our Nation’s environmental laws and protecting Americans from air pollution,” said Deputy Attorney General Jeffrey Rosen.

CARB Chair Mary D. Nichols added, “Californians live with some of the worst air in the country, air that adversely impacts public health causing or contributing to asthma, respiratory disease, and premature death. It also costs the economy through medical costs as well as lost work and schools days. Automakers must learn that in this state, CARB will continue to use the very latest and most sophisticated science and technology to catch cheating and violations that impact our air and health.” 

Daimler will also be required to change its corporate culture by reforming the way it has designed and manufactured vehicles in the past such that it will beable to detect and prevent such environmental violations in the future. This includes increased testing under real-world conditions with portable analyzers, starting a robust whistleblower program, enhancing employee training, and performing internal audits which must be reviewed and critiqued by external consultants.

A list of vehicles affected and other information can be found at this link: 

"https://www.epa.gov/enforcement/daimler-ag-and-mercedes-benz-usa-llc-clean-air-act-civil-settlement"

VW settles part of emissions cheating scandal

Volkswagen (VW) has agreed to a $14.7 billion settlement with U.S. and California authorities to resolve its unprecedented emissions cheating scandal, according to an announcement by the California Air Resources Board (CARB) yesterday. 

Part of a partial Consent Decree issued by U.S. District Judge Charles Breyer, the agreement is the largest in automaker history. In addition to CARB, the U.S. Environmental Protection Agency (USEPA) and the U.S. Department of Justice (DOJ) approved the edict.

Photo: USEPA, Fair Use

The scandal was revealed after CARB engineers discovered that VW had installed "defeat devices" in certain 2.0-liter diesel powered passenger vehicles sold under the VW and Audi nameplates. The devices prevented federal and California required emission control equipment from operating properly unless the system detected that the vehicle was undergoing an emissions inspection, at which point its programming caused the equipment to do what it was required to do by law.

Approximately 500,000 such vehicles were sold in the United States between model years 2009 and 2015. About 71,000 were sold in California. The scandal was particularly notorious because the vehicles were promoted as ones that utilized clean diesel technology, thus encouraging potential owners and lessees to choose the vehicles because they were duped into thinking that they were doing their part to help the environment.

 A similar scandal involving 3.0-liter engines sold in VW, Audi, and Porsche vehicles, is not part of this agreement.

The terms of the Decree require VW and Audi to:

• Buy back, terminate leases, or provide approved emissions modifications for nearly 475,000 2.0-liter TDI diesel cars in the U.S.;
• Provide cash payments to owners/lessees;
• Pay for environmental remediation; and
• Promote zero emissions vehicle (ZEV) technology.

California will receive about $1.2 billion to mitigate environmental damage caused by VW's cheating.

“The court’s approval of the largest settlement for California under the Clean Air Act sets in motion a public process that will develop a range of projects to mitigate the harmful health effects of smog,” said CARB’s Chair Mary D. Nichols. “While we continue to pursue penalties for these violations -- and a resolution for 3.0-liter vehicles which were also equipped with defeat devices -- this decision sends a clear message that California will continue  to ensure cars and tailpipes meet the standards designed to protect the public from pollution and smog.”