Mercedes-Benz has reached a deal with U.S. states to close a protracted investigation into suspected manipulation of diesel emissions. According to U.S. prosecutors, the settlement totals $149.6 million and covers 48 states, as well as Puerto Rico and the District of Columbia. The company says this effectively resolves its diesel-related claims at the state level in the United States and will not affect net profit, since the expenses have already been reserved.

At the center of the case are allegations that undisclosed software in diesel models lowered emissions during official tests, while in everyday driving the levels could significantly exceed legal limits. Under the agreement, Mercedes will fund installation of an approved software modification on affected vehicles, provide an extended warranty, and pay $2,000 to owners and lessees whose cars undergo the required repair.

The arrangement also specifies how payments to the states will work: a significant share is disbursed upfront, while the remainder can be reduced depending on how many vehicles are actually repaired, bought back, or removed from service. The settlement requires measures to prevent similar issues in the future and provides for oversight, with the outcome subject to court approval. In practice, the structure appears aimed at tangible results—getting more vehicles fixed or retired—rather than box‑ticking.