Mercedes to Recall More Than 100,000 Vehicles

Mercedes-Benz has agreed to spend about $59 million to repair defective emissions systems for model years 1998-2006, to settle a dispute with the U.S. Environmental Protection Agency. The settlement involves about 79,000 M-Class models that had defective catalysts and about 29,000 AMG models to update software and replace air pump secondary relays. Mercedes also will extend the emissions warranties on catalytic converters for about 20,000 S- and CL-Class models from 8 years/80,000 miles to 10 years with unlimited miles.

In addition to repairing the vehicles, the car company must pay $1.2 million in civil penalties for failing to notify the EPA about the defective emissions controls. The Clean Air Act requires manufacturers of new vehicles to file an emissions defeet information report with the EPA not more than 15 business days from the discovery of an emissionsrelated defect impacting 25 or more vehicles or engines in the same model year. The settlement agreement also requires Mercedes to improve its emissions defect reporting system.

Copyright Hearst Business Publishing Apr 2007
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