Fiat Chrysler will pay $800 million to settle diesel emissions lawsuits

Andrew Cummings
January 11, 2019

Fiat Chrysler Automobiles has reportedly agreed to pay almost $800 million to settle Department of Justice charges focused on the company's diesel emissions software.

The specific vehicles to be recalled include diesel-powered Ram 1500 and Jeep Grand Cherokee from the 2014-2016 model years. Apart from this, part of the settlement includes US$ 311 million in fines and US$ 72 million to other states. The recalled vehicles - which are equipped with the "EcoDiesel" 3.0-liter engines - are to be installed with new software.

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 US states that do not already require the use of the California-mandated high-efficiency gasoline vehicle catalysts. If Fiat Chrysler doesn't get at least 85% of the vehicles brought in for repairs, it will face additional fines.


Wheeler and Deputy Associate Attorney General Jesse Panuccio said the settlement shows that the Trump administration will enforce environmental law and provide a level playing field for the majority of companies that do follow environmental rules and laws.

This on a day when Fiat Chrysler also agreed to a settlement in the neighborhood of $800 million. The company will also pay a $305 (£239 / €265) million civil penalty and "implement a program to mitigate excess pollution from these vehicles".

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


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 practice was discovered in September 2015 when Volkswagen admitted to using them. VW's tally is past $25 billion in the United States alone. He declined to comment when asked about the status of the investigation. The Fiat Chrysler settlement does not resolve any criminal allegations, according to Assistant Attorney General Jeffrey Clark.

"Today's settlement sends a clear and strong signal to manufacturers and consumers that the Trump administration will vigorously enforce the nation's laws created to protect the environment and public health", said Acting EPA Administrator Andrew Wheeler.


Other reports by iNewsToday

FOLLOW OUR NEWSPAPER