Mercedes-Benz penalized $1.2 M for Clean Air Act violation

Car maker Mercedes-Benz would have to pay the government $ 1.2 million in civil penalties, the Environmental Protection Agency reported Wednesday.

The penalty came after the company failed to inform the EPA about air pollution control defects in its 1998-2006 vehicle models. Mercedes must also improve on its reporting system and emissions defect investigation to ensure its compliance, pegged at around $ 1 million annually.

After the EPA had investigated the matter, Mercedes voluntarily recalled vehicles with two of the defects, while informing the ownersthat it will extend the warranty of those with three of the defects. The car maker would have to spend at least $59 million to implement the recalls and the warranty extension.

“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.

The Clean Air Act requires auto manufacturers to file a defect information report with EPA not more than 15 working days after an emission-related defect is found to affect 25 or more vehicles, so that EPA may consider whether the defect will cause emission standards to be exceeded and whether a recall is necessary.

The vehicles subject to the voluntary recalls and extended warranties may have defective catalytic converters or defective air pumps. The voluntary recalls and extended warranty will reduce the emissions of harmful pollutants caused by the defects by over 500 tons cumulatively. These pollutants include nonmethane hydrocarbons (NMHC), nitrogen oxides (NOx) and carbon monoxide (CO). NMHC and NOx are key ingredients in the production of ozone, a major contributor to cancer-causing smog. CO impairs breathing and is especially harmful to children, people with asthma, and the elderly.

The proposed consent decree is subject to a 30-day public comment period and final approval by the U.S. District Court in Washington, D.C.