FCA To Pay $800 Million For Its Dirty EcoDiesel Engines

Gladys Abbott
January 11, 2019

According to a media report, Fiat Chrysler Automobiles (FCA) will pay more than US$ 650 million to settle a case over diesel emission cheating.

The Italian-American automaker will be required to pay around $311 million in fines to the federal government and California regulators, according to the person, who wasn't authorized to discuss the settlement publicly and spoke to The Associated Press on condition of anonymity.

The Environmental Protection Agency in 2017 accused the automaker of improperly employing software controls to circumvent emissions regulations in the EcoDiesel-powered Ram 1500 and Jeep Grand Cherokee. 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. 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.

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 shares were up 1.2 percent at $15.96 in NY near midday on Thursday.

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Under the deal, the company may be subject to additional penalties if at least 85 per cent of the vehicles aren't repaired within two years. The company will also need to pay about $280 million to compensate owners.

The expensive reprimand centers around Fiat Chrysler's use of illegal engine-controlled software, which allowed thousands of its diesel-fueled cars to produce false emissions tests results.

The $25 billion Italian-American carmaker deceived consumers and the USA government by installing so-called defeat devices that "undermined important clean air protections", Andrew Wheeler, acting administrator of the Environmental Protection Agency, said yesterday. Asked about the criminal case on Tuesday, Fiat Chrysler said it wouldn't comment on speculation.

"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 statement.

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