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Mercedes Clean Air Settlement

(Washington, D.C. - Dec. 21, 2006) Mercedes-Benz will pay $1.2 million in civil penalties to resolve its failure to promptly notify EPA about air pollution control defects on numerous 1998 - 2006 model vehicles. Mercedes must also improve its emissions defect investigation and reporting system to ensure future compliance, at an estimated cost of approximately $1 million per year.

After EPA initiated its investigation of this matter, Mercedes commenced voluntary recalls for two of the defects and notified owners that it would extend the warranty coverage to address a third defect. Mercedes will incur an estimated cost of $59 million to implement the recalls and the extended warranty.

"These defect reporting requirements are a critical part of EPA's program to reduce air pollution by ensuring that vehicles on the road comply with the Clean Air Act's emissions standards," said Catherine R. McCabe, principal deputy assistant administrator for the Office of Enforcement and Compliance Assurance.

For more information, contact:

Jeffrey A. Kodish
U. S. Environmental Protection Agency
Air Enforcement Division, Western Field Office
12345 W. Alameda Parkway, Suite 214
Denver, Colorado 80228
(303) 236-9511
kodish.jeff@epa.gov

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