Mercedes-Benz fined for Clean Air Act violation
Mercedes-Benz USA and its parent corporation, DaimlerChrysler AG, have agreed to pay $1.2 million in civil penalties to resolve allegations that they violated the Clean Air Act.
The companies failed to promptly notify the Environmental Protection Agency (EPA) about defects in the air pollution controls installed on numerous 1998 to 2006 Mercedes model vehicles, according to the Justice Department and the EPA.
In response to the EPA's investigation into the matter, Mercedes began voluntary recalls for two of the defects at issue and notified owners that it would extend the warranty coverage to address a third defect, at an estimated cost of about $59 million.
Mercedes will be required to improve its emissions defect investigation system at an estimated cost of $1 million per year.
The vehicles subject to the voluntary recalls and extended warranties will reduce the emissions of harmful pollutants caused by the defects by over 500 tons cumulatively.