Daimler AG and its Canadian and American Mercedes-Benz subsidiaries have agreed to settle a class action concerning 83,000 BlueTEC diesel vehicles in Canada.

The proposed settlement provides for cash payments and other benefits to current and former owners and lessees.

The cash value of the settlement is approximately C$243m. The settlement also provides significant value to class members in the form of an emissions repair that provides for cleaner emissions that will comply with Canadian emissions standards, the automaker said.

This result was reached between the defendants and Canadian class counsel, Koskie Minsky and Lenczner Slaght, after almost six years of litigation.

The proposed nationwide settlement is subject to approval by the Ontario Superior Court of Justice at a hearing scheduled for 9 February, 2022.

If approved, the settlement programme in Canada will include:

Model Year 2009-2016 Mercedes-Benz and Model Year 2010-2016 Mercedes-Benz Sprinters with BlueTEC II emission control systems

  • Cash payments of up to $2,925 to all who receive the emissions repair
  • Cash payments of up to $835 for all former owners and lessees
  • Additional cash payments ranging between $330.20 and $660.40 for various reasons including those relating to delays of the emissions repair, requirements to reclassify the emissions standard or reduced vehicle performance
  • A buyback option in some circumstances

Peter Griffin, counsel, Lenczner Slaght, said: “This result is the culmination of a concerted effort to bring to a conclusion an unfortunate chapter in automotive history in North America.

Kirk Baert, partner, Koskie Minsky, said: “We believe this settlement provides real compensation to class members”.