In the hallway of the Stuttgart Higher Regional Court before the start of the hearing into alleged emissions violations of Mercedes-Benz diesel cars, one of the car manufacturer’s legal representatives pulled out his cell phone to take a photo. Several lawyers and representatives of the legal department smile happily into the camera. That shows confidence. There is a lot at stake for Mercedes-Benz Group AG in the civil proceedings. Numerous investors accuse the listed company of not informing them about the emissions issue in a timely manner – and are therefore demanding compensation of 1.25 billion euros for losses incurred. The Higher Regional Court has been hearing a model lawsuit against the car manufacturer since autumn 2023. Now, for the first time, members of the former Daimler board of directors have been heard as witnesses in the proceedings. The question was whether the committee once strategically decided to circumvent EU emissions standards and therefore had allegedly illegal defeat devices installed from 2012 to 2018. Former CEO Dieter Zetsche answered this question in the negative on Tuesday. He has changed little since leaving Daimler at the helm in 2019. The 72-year-old entered the meeting room through the side entrance shortly after 2 p.m. – wearing a gray suit, white shirt, glasses and mustache. Taking photos in the hall was prohibited.Emissions regulations were said to have never been an issue on the board. From his point of view, the plaintiff’s claim was “simply wrong,” said the former CEO, who was one of the most important car managers in the world for more than 13 years. At that time, the board dealt with strategic questions and, among other things, dealt with economic, organizational and financial issues. According to his recollection, the question of licensing regulations was never on the agenda for board meetings. The car manufacturer’s board of directors had never dealt with the emissions issue before the allegations against Volkswagen became known. They felt committed to technological leadership as the “seal keeper of the automobile”. There was no strategic, fundamental decision to circumvent emissions standards. As a result, the plaintiff’s lawyers asked numerous questions, some of which led to discussions with the company’s lawyers, who did not consider the questions admissible for taking evidence. In the meantime, Zetsche crossed his legs, leaned back in his chair and listened to the legal argument. Former head of research had to testify first Before Zetsche, the first witness to be heard in the morning was former head of research Thomas Weber, who headed this department from 2003 to 2016 and was also responsible for the development of the former passenger car division. He also came through the side entrance. Weber said: “There was no way such a fundamental strategic decision was made.” This topic was completely foreign to the board of directors. The diesel affair was initially initiated by Volkswagen in mid-2015. The now 71-year-old Weber said that until then he was not familiar with the word shutdown device. His witness interrogation lasted significantly longer than that of his then superior Zetsche. The Stuttgart-based group had always rejected targeted manipulation of exhaust technology with cheating software, such as that used by VW for years. The investor model procedure in Stuttgart serves to clarify factual and legal questions for a large number of individual lawsuits before the regional court. On this basis, the lower court can decide on claims for damages. The Stuttgart Higher Regional Court has already dealt with more than 60 declarations submitted by both litigants in several hearings. In February 2025, the court then allowed the question to be asked whether the company’s board of directors had specifically made a strategic decision to manipulate exhaust gases from diesel engines. Did Mercedes cheat when cleaning exhaust gases? Mercedes has had to deal with emissions allegations for years. In 2018 and 2019, the Federal Motor Transport Authority (KBA) issued recall notices against a total of several hundred thousand of the manufacturer’s vehicles due to inadmissible emissions technology. Specifically, it was about technical devices that restrict exhaust gas purification. What is relevant at Mercedes in this context are so-called thermal windows and the coolant target temperature control (KSR). The former technology, which has also been used as standard by other manufacturers, ensures that the vehicles emit fewer toxic nitrogen oxides. To do this, some of the exhaust gases are burned directly in the engine. If it is cold outside, this mechanism is automatically throttled. The manufacturers say this is necessary to protect the engine. With KSR, however, the delayed heating of the engine oil leads to lower emissions of pollutants. The accusation here is that the technology works almost exclusively on the test bench. Weber said there were no test stand detections. “I definitely rule that out.” Investors are demanding compensation for price losses. The model plaintiff in the lawsuit – a private investor – is represented by the Tilp law firm. According to the Tübingen lawyers, a large number of private and around 200 institutional investors have joined the process. The plaintiff investors accuse Mercedes-Benz Group AG of violating its obligations under capital market law. The company concealed the use of illegal defeat devices in its diesel vehicles as well as the associated risks and costs from the capital market and deceived investors about the true circumstances. Between July 10, 2012 and June 20, 2018, the share price of the former Daimler AG fell from more than 90 euros to less than 60 euros. The damage caused by price losses is therefore the subject of the lawsuits. A company spokeswoman confirmed in advance: “We continue to be of the opinion that we have properly complied with our disclosure obligations under capital market law.” The claims are unfounded.More on the subjectAfter the scandal became known, the Stuttgart public prosecutor’s office began investigations. There were proceedings against two clerks and two team leaders from the car manufacturer. Several penalty orders were issued. Finally, a fine of 870 million euros was imposed on the group in 2019. But not because of illegal defeat devices, but because of a negligent violation of the duty of supervision within the company. There were never any investigations against the board. The US judiciary had ended its investigations against Mercedes-Benz in 2024. The trial in Stuttgart before the Higher Regional Court will continue with further witness hearings. Among other things, the head of passenger car diesel engine development will be heard on Wednesday. Other employees and former employees of the car manufacturer are also invited.
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