Fiat Chrysler to settle United States diesel emissions cases for $1.1 billion

11 Janvier, 2019, 02:54 | Auteur: Auguste Feret
  • Ram trucks are seen on a sales lot

Following extensive negotiations, Fiat Chrysler Automobiles has reached a settlement with the Department of Justice, the Environmental Protection Agency, the State of California and an assortment of other entities over its "noncompliant diesel vehicles".

The settlement includes $311 million in total civil penalties, up to $280 million to resolve claims from diesel owners, and extended warranties worth $100 million.

The multinational auto manufacturer will pay $305 million to the state of California and the federal government, recall around 104,000 vehicles, pay vehicle owners an average of $2,500 in compensation, and pay approximately $78 million in litigation and other penalties.

Federal officials allege that the 104,000 Jeep Grand Cherokees and Ram pickups, made between 2014 and 2016, were equipped with diesel engines programmed to run pollution controls during lab tests that would turn off under certain conditions on the road. 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 case, announced by the state Department of Justice and the California Air Resources Board, is similar to the multibillion-dollar settlement made by Volkswagen over the use of the rogue software.

Fiat Chrysler will agree to corporate governance reforms meant to prevent future emissions violations under the agreement, the person said.

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Under the terms of the settlement, FCA will recall and fix more than 100,000 diesel-powered vehicles in the United States.

The settlement marks the conclusion of a lawsuit first brought on by the Justice Department in 2017.

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

Fiat Chrysler has maintained that it didn't deliberately scheme to cheat emissions tests and the company didn't admit wrongdoing. USA officials refrained from accusing the auto manufacturer of intentionally creating software to cheat on emissions tests.

Asked about the message the settlement would send, acting Environmental Protection Agency Administrator Andrew Wheeler responded: "Don't cheat".

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