Fiat Chrysler to Pay About $800 Million to Settle Emissions Charges

11 January, 2019, 15:42 | Author: Regina Silva
  • Bill Pugliano  Getty Images The Chrysler world headquarters in Auburn Hills Mich

The settlement, which is expected to be formally announced Thursday by the U.S. Justice Department and the Environmental Protection Agency, is the second between the U.S. government and an automaker over diesel emissions-cheating allegations.

Fiat-Chrysler and the Department of Justice each declined to comment when reached by ABC News. The VW scandal extended to some 11 million other vehicles the company sold worldwide and led to USA criminal charges against eight people.

The vehicles involved in the settlement are the 2014, 2015 and 2016 model year Jeep Grand Cherokee SUVs and Dodge Ram 1500 trucks with 3-liter diesel engines.

The settlement includes fines and more than $300 million in "consumer relief" and requires Fiat Chrysler to establish a recall program offering motorists an approved plan for modification their emissions systems. Fiat Chrysler has two years to fix 85 percent of the vehicles being recalled, and it will face more penalties if it fails to do so. He said not only did Fiat Chrysler break the law but that it worked to hide its conduct.

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"Fiat Chrysler broke those laws and this case demonstrates that steep penalties await corporations that engage in such egregious violations", Principal US Deputy Associate Attorney General Jesse Panuccio said in a statement.

The U.S. Environmental Protection Agency first accused FCA of wrongdoing in January 2017 when it issued a notice alleging the company violated the Clean Air Act with excessive emissions of harmful nitrogen oxide. The company will also need to pay about $280 million to compensate owners.

Volkswagen admitted that its software was improperly installed to deceive emission-testing equipment by making engines put out much lower levels of the pollutants when being tested than they did in real-world driving situations. VW was found to have colluded with Bosch to pass USA emissions only while its vehicles sensed they were being tested by federal agencies, while otherwise they operated in a completely different driving mode that polluted up to 40 times above the legal limit.

The $25 billion Italian-American carmaker deceived consumers and the United States government by installing so-called defeat devices that "undermined important clean air protections", Andrew Wheeler, acting administrator of the Environmental Protection Agency, said yesterday.

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