Mercedes-Benz’s American and Canadian operations have agreed to a settlement on a diesel emissions class action lawsuit.
The agreement affects about 83,000 BlueTEC diesel vehicles in Canada. The proposed settlement, announced by law firm Koskie Minsky LLP, will provide cash payments and other benefits to current and former owners and lessees.
The cash value of the settlement comes in at about $243 million.
“The settlement also provides significant value to class members in the form of an emissions repair that provides for cleaner emissions that will comply with Canadian emissions standards,” the law firm’s announcement said.
Litigation has been ongoing for six years. The company was asked by the U.S. Justice Department in April 2016 to internally probe its exhaust emissions certification process. The request came soon after it was discovered that Volkswagen had been cheating on its diesel emissions tests.
Lenczner Slaght LLP also worked as counsel.
As noted, this settlement is only proposed at this time. It is subject to approval by the Ontario Superior Court of Justice. The announcement said the approval hearing will take place on February 9, 2022.
The payments will cover model year 2009-2016 Mercedes-Benz and model year 2010-2016 Mercedes-Benz Sprinters with BlueTEC II emission control systems. Those affected will be able to receive:
Cash payments of up to $2,925 to all who receive the emissions repair.
Cash payments of up to $835 for all former owners and lessees.
Additional cash payments ranging between $330.20 and $660.40 for various reasons including those relating to delays of the emissions repair, requirements to reclassify the emissions standard or reduced vehicle performance.
A buyback option in some circumstances
“This result is the culmination of a concerted effort to bring to a conclusion an unfortunate chapter in automotive history in North America,” said Peter Griffin, counsel at Lenczner Slaght.
In August 2020, Daimler AG, the maker of Mercedes-Benz vehicles, announced it reached settlements in the U.S. for the same claim. That cost the company US$2.2 billion.