Fiat Chrysler to pay around US$650 million in emissions cheating case

Lloyd Doyle
January 11, 2019

Fiat Chrysler will pay more than $650 million to settle allegations of cheating on emissions tests. The VW scandal extended to some 11 million other vehicles the company sold worldwide and led to US criminal charges against eight people.

The Italian-American automaker will be required to pay around US$311 million in fines to the federal government and California regulators, according to the person, who wasn't authorized to discuss the settlement publicly and spoke to The Associated Press on condition of anonymity.

According to the USA government, FCA used "illegal and undisclosed software" on 2014-2016 Ram 1500 and Jeep Grand Cherokee vehicles equipped with the 3.0-liter EcoDiesel V6 engine. German auto supplier Robert Bosch GmbH, which provided some diesel components for the vehicles, also agreed to pay $27.5 million to resolve claims from diesel owners.

The settlement is scheduled to be announced Thursday by the Justice Department in Washington, the person said. The government says the software acted as a defeat device as it would fully activate emission controls during EPA and California emissions testing, but "reduce or deactivate emission controls" during real world driving.

Fiat Chrysler will not admit wrongdoing as part of the civil settlement.

The settlement is the second between the US government and an automaker over allegations of cheating on diesel emissions. The company also agreed to buy back some vehicles, fix others, pay to mitigate environmental harm and settle lawsuits for a cost of more than $30 billion. The recalled vehicles - which are equipped with the "EcoDiesel" 3.0-liter engines - are to be installed with new software. About 500,000 VW vehicles were involved in the USA cheating scandal.

Representatives for Fiat Chrysler and the Justice Department declined to comment.

The Justice Department and company are also said to be nearing a settlement to resolve a two-year criminal investigation into whether it knowingly sold diesel vehicles that violated clean-air rules, according to two other people familiar with the matter. "Today's settlement sends a clear and strong signal to manufacturers and consumers alike - the Trump administration will vigorously enforce the nation's laws created to protect the environment and public health".

Other reports by Iphone Fresh

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