Mercedes-Benz stock under pressure despite dismissal of climate lawsuit by high regional court

The Environmental Aid failed in its appeal to legally obligate Mercedes to make climate-friendly changes.

11/10/2023, 3:01 PM
Eulerpool News Nov 10, 2023, 3:01 PM

The attempt by the German Environmental Aid (DUH) to legally force car manufacturer Mercedes-Benz to carry out climate-friendly reconstruction has failed in the second instance. The Stuttgart Higher Regional Court (OLG) dismissed the DUH appeal on Thursday, thus confirming the verdict of the Stuttgart District Court. However, the decision is not yet legally binding and can be appealed to the Federal Court of Justice. (Ref. 12 U170/22)

Environmental activists are advocating for a change in strategy at Mercedes-Benz, aiming for the company to stop selling traditional combustion engines, which emit greenhouse gases, from November 2030. However, the Higher Regional Court ruled that the plaintiffs' appeal was obviously unfounded, thus the DUH has no claim. The plaintiffs were also unable to prove that the state is obligated to prohibit the automaker from selling new cars with combustion engines from October 31, 2030, or possibly even from today.

On Friday, Mercedes-Benz shares on the XETRA market temporarily fell by 1.41 percent to 56.48 Euros. The decision of the Higher Regional Court thus temporarily affects the company's performance. However, it remains to be seen whether the environmental aid will appeal the decision to the Federal Court of Justice.

The DUH has successfully sued car manufacturers in the past to promote climate protection. For example, lawsuits have already been filed against Volkswagen and BMW. The environmental protection organization strongly advocates for sustainable mobility and aims to significantly reduce CO2 emissions in the transportation sector.

The Mercedes-Benz case once again highlights the relevance of climate and environmental protection in the automotive industry. While some companies are already betting on alternative propulsion technologies, DUH continues to engage in intensified dialogue with manufacturers to drive necessary changes. Thus, court decisions also have a signaling effect on the entire sector and can pave the way towards more climate-friendly mobility.

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