Mercedes Diesel-Gate Case Continues
The luxury automaker Mercedes-Benz is facing a similar diesel-gate to what Volkswagen went through, and it's been ongoing for some time, but just not really on anyone's radar.
It is being alleged that certain models had software "defeat devices" that detected when the vehicle was being emissions tested and when it did, the vehicle would operate within the legally allowed emissions ranges for the test, but otherwise, the car would not. For Mercedes though, they should have seen it coming as they shared the same supplier with VW that helped to create the emissions testing defeat devices.
Big Damages Ahead?
While Mercedes is denying the claims, the court did not dismiss the case as the company asked. Bosch, which makes some of the suspect software, is used by Mercedes and has already settled out claims brought related to similar cases from both VW and Fiat Chrysler.
Mercedes is facing some big damages ahead, particularly given that VW paid out over $25 billion, and Bosch paid out over $100 million. However, what may be worse than a financial hit to the company could be potential criminal charges and prison sentences (though Mercedes seems to have steered clear of those). Additionally, like VW, Mercedes is likely to face a reputational battle as consumer confidence is surely to be harmed as a result of such a scandal.
However, unlike the VW scandal, the case against Mercedes hasn't unfolded in the same way. Although the automaker apparently instituted a recall to improve their diesel emissions to avoid sanctions in Europe, the fallout doesn't seem to be as bad, so far, for the luxury brand.
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