Mercedes-Benz resolves Diesel consumer class action in Canada.

December 10, 2021 - Daimler AG, its subsidiary Mercedes-Benz Canada Inc., and other affiliated companies have reached a settlement agreement in the Canadian consumer class action “Kalra v. Daimler AG, Mercedes-Benz Canada Inc. (“MBC”), Mercedes-Benz USA, LLC (“MBUSA”), and Mercedes-Benz Financial Services Canada (“MBFS”) (collectively, “Daimler”)” in order to thereby fully resolve the proceeding by mutual agreement.

The settlement applies to approx. 83,000 MY 09-16 Mercedes-Benz diesel passenger cars and diesel-powered MY 10-16 Mercedes-Benz Sprinters with BlueTEC II emission control systems sold or leased to Canadian residents. The settlement is subject to the final approval of the Ontario Superior Court of Justice, where the settlement agreement was filed.

With the settlement, Daimler takes another step toward resolution of various diesel proceedings and avoids lengthy court actions with respective legal and financial risks. Daimler denies the material factual allegations and legal claims asserted by the plaintiffs and settlement class members. The settlement resolves the class action without a finding suggesting that functionalities in Daimler’s vehicles are defeat devices.

The estimated cost of the class action settlement is approx. CAD 250.2 million (approx. EUR 174.5 million).

Class members will find detailed information about the settlement, including eligibility and benefits, online soon. Class members will also be notified with further details at this time.

As part of the settlement, Mercedes-Benz Canada will offer field measures to owners of eligible vehicles. The technical measures are based on the emission modifications offered to U.S. customers of eligible vehicles. The U.S. program is part of settlements regarding diesel emissions with various U.S. regulatory authorities and plaintiffs in a U.S. consumer class action.

The vehicles subject to the Canadian settlement were not sold in the same configurations in Europe and the emission control system of the Canadian vehicles is different from the models sold in Europe due to the differing certification and legal frameworks.

Exchange rate CAD to EUR as of December 10, 2021, 1 CAD = 0.697 EUR