The brand's diesel emissions legal battles are far from over.
Mercedes-Benz and Bosch have been ordered to pay a combined $6 million to the state of Arizona after losing its lawsuit relating to the false advertising of its diesel products. Reuters reports that Mercedes-Benz will be paying $2.8 million in consumer restitution. All qualifying Arizona consumers will be paid $625 per vehicle purchased.
Regardless of this outcome, Mercedes-Benz stands by the fact that it is not in the wrong but will still pay $2.7 million in penalties.
Bosch also refused to admit any liability and will pay a total of $525,000 in penalties. That's not as bad as the bill issued by the state of California, which will cost Bosch $25 million. According to Mercedes-Benz, it accepts the verdict because it does not want to prolong the litigation, which could translate to further unwanted costs.
"With the settlement, the company takes another step toward resolution of various diesel proceedings and avoids further costs of litigation and lengthy court actions," Mercedes-Benz said in a statement.
What was the advert that landed the brand in hot water in the first place? Interestingly it was not due to a recent campaign but rather one that represented cars powered by the now-defunct turbodiesel BlueTec powertrains that you would have found in the likes of the Mercedes-Benz E-Class as well as the GL, GLE, GLK, ML, R-Class, and S-Class ranging from 2009 to 2016.
The BlueTec dates back to 2005 until it was put to rest in 2019, with the Mercedes-Benz GLC being the final product to employ the powertrain.
As per the brand's marketing claims, this turbodiesel unit was said to be the most environmentally conscious oil burner available, but the Dieselgate saga unveiled that this was not true.
Bosch admitted that it had supplied Mercedes-Benz, among other manufacturers, with engine control units that would fool the NEDC testing system into thinking the cars were more economical than they were.
This isn't the first settlement that Mercedes-Benz has been subjected to, as it follows the $2.2 billion it had to pay out to the US government for the abovementioned scandal. This included an $875 million civil penalty and $546 million required to fix all cars fitted with Bosch's device.
It is also unlikely to be the last settlement it has to pay as the brand is still under investigation by the Justice Department for various environmental and consumer protection infringements. This scandal caused emission regulations across the world to toughen up against diesel engines, which is why so many companies decided to scrap them entirely in favor of electrified drivetrains.
Mercedes-Benz still has some dedication to the diesel mill, but it is clear that its path forward is electrification with the EQ brand. With the arrival of the Euro 7 Emissions proposal, it is apparent that this transition to complete electrification may occur as soon as 2035.