Fiat Chrysler to pay around $650M in emissions cheating case
Fiat Chrysler to pay around $650M in emissions cheating case
The EPA is investigating certain Ram 1500 pickups and Jeep Grand Cherokee SUVs for less-than-honest emissions test
11 January, 2019, 15:38
The Justice Department said Fiat Chrysler must work with one or more vendors of aftermarket catalytic converters to improve the efficiency of 200,000 converters that will be sold in the 47 USA states that do not already require the use of the California-mandated high-efficiency gasoline vehicle catalysts.
Fiat-Chrysler and the Department of Justice each declined to comment when reached by ABC News. For example, someone who owned an affected vehicle on January 12, 2017, and who completes the software update will receive $3,075, according to the Plaintiffs' Committee for Fiat Chrysler-Dodge-Jeep EcoDiesel Litigation.
In last year's third quarter, Fiat Chrysler, also known as FCA, took an $810 million (700 million euros) charge to deal with possible US diesel emissions settlement costs, cutting into the company's profits.
Fiat Chrysler won't have to admit wrongdoing and will agree to pay owners of roughly 104,000 diesel-powered SUVs and pickups to update the emissions software on the vehicles via a recall, said the person, who spoke on the condition of anonymity to discuss the agreement before it was announced. Fiat Chrysler will pay about $400 million in civil fines to different federal and state agencies. If Fiat Chrysler doesn't get at least 85% of the vehicles brought in for repairs, it will face additional fines.
FCA said that the total cost of owner compensation, extended warranties, and environmental mitigation is estimated at $400 million. Four months later, the Justice Department sued on the EPA's behalf alleging that software on diesel engines allowed them to emit more pollution on the road than during EPA lab tests. About 500,000 VW vehicles were involved in the USA cheating scandal.
"Fiat Chrysler deceived consumers and the federal government by installing defeat devices on these vehicles that undermined important clean air protections", EPA Acting Administrator Andrew Wheeler said in a prepared statement Thursday.
Fiat Chrysler will agree to corporate governance reforms meant to prevent future emissions violations under the agreement, the person said.
"The settlements do not change the company's position that it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests", the automaker said.
The supplier "enabled" the cheating and should have known its customers would use the software improperly, the office added.
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