German court rules Mercedes knew about cheat devices

The Stuttgart Higher Regional Court on Thursday found that Mercedes Benz staff had deliberately fitted unauthorized devices to rig emissions levels in some models.

The "Dieselgate" scandal, revolving around the revelation that automakers were cheating when it came to emissions tests, first rocked Volkswagen in 2015 and then spread to other carmakers.

What was the case about

Germany's Federal Association of Consumer Organizations (VZBV) filed a lawsuit in 2021 aimed at helping owners of certain Mercedes Benz diesel vehicles to claim damages. 

The so-called defeat devices installed in the vehicles made them seem less polluting in lab tests than they were on the road.

Reasons given for compensation are that consumers paid a premium for what they believed to be cleaner and more fuel-efficient vehicles.

The defeat devices meant that the vehicles did not meet the promised environmental standards.

Once the scandal was uncovered, the resale value of affected vehicles dropped significantly. Some owners also reported reduced performance and fuel efficiency once the defeat devices were removed from vehicles.

The case applied to various models, from the Mercedes GLC and GLK ranges, that had been subject to recalls. The court ruled that devices had been deliberately installed on some, but not all, models.

What happens now?

It was initially unclear how much Mercedes might have to pay out. In a deal reached between VW and VZBV in 2020, also involving Dieselgate, diesel owners received a total of around €750 million (about $810 million) in compensation.

"The court confirmed the vzbv’s opinion that Mercedes installed inadmissible defeat devices in its vehicles," VZBV head of class actions, Ronny Jahn, said. "Important steps have now been taken for claims for damages."

"The Federal Association of Consumer Organizations has now achieved success for consumers in the diesel scandal for the second time," Jahn added.

However, Stuttgart-based Mercedes said in a statement that it maintained "that the claims asserted against our company are unfounded and we will defend ourselves against them."

The carmaker has rejected the ruling and says it plans to appeal.

rc/kb (AFP, dpa)

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