Published: Fri, January 11, 2019
Finance | By Loren Pratt

Fiat Chrysler to settle USA diesel emissions cases for $1.1 billion

Fiat Chrysler to settle USA diesel emissions cases for $1.1 billion

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.

FCA also settled a class action lawsuit over the diesel issue and this means current and former owners will be eligible to receive a payment of approximately $2,800 (£2,195 / €2,434).

Under a deal with the Justice Department and the Environmental Protection Agency, the automaker will recall and fix the more than 104,000 out-of-compliance Jeep SUVs and Ram pickup trucks.

Fiat Chrysler has maintained that it didn't deliberately scheme to cheat emissions tests and the company didn't admit wrongdoing. The company said the software is there to protect the engine from damage during testing rather than to cheat on emissions tests. An attorney for the company did not immediately respond to a call and email seeking comment Wednesday night.

FCA said that the total cost of owner compensation, extended warranties, and environmental mitigation is estimated at $400 million. About 500,000 VW vehicles were involved in the US cheating scandal. The VW scandal extended to some 11 million other vehicles the company sold worldwide and led to US criminal charges against eight people.

The settlement is the second between the USA government and an automaker over allegations of cheating on diesel emissions. FCA is one several manufacturers to use similar Bosch software that Volkswagen admitted in 2015 that it co-developed to cheat federal emissions tests.

The affected vehicles are powered by a 3.0-litre diesel engine.

Since the VW scandal, CARB and the EPA have gone after other automakers and delayed their diesel-vehicle certifications.

"Each of these vehicles differs materially from the specifications provided to EPA in the certification applications", the government said.

But Fiat Chrylser has always maintained that it did nothing wrong and that the software for its diesel vehicle engines is a legitimate way to meet emissions rules.

The federal lawsuit sought civil fines of over $4 billion, as well as court orders stopping the company from making or selling vehicles with undisclosed software.

Sergio Marchionne, the late chief... Marchionne died previous year.

Like this: