Rumour: FCA to pay US$ 650m for diesel emission settlement

Galtero Lara
Enero 11, 2019

Fiat Chrysler will pay more than US$650 million to settle allegations that it cheated on emissions tests involving more than 104,000 Jeep SUVs and Ram pickup trucks, a person with the knowledge of the settlement told The Associated Press on Wednesday.

In last year's third quarter, Fiat Chrysler, also known as FCA, took an US$810 million (700 million euros) charge to deal with possible USA diesel emissions settlement costs, cutting into the company's profits.

The settlement also includes $72.5 million for state civil penalties and $20 million in payments to California and to offset excess emissions.

The settlement is scheduled to be announced Thursday by the Justice Department in Washington, the person said.

The pact will resolve civil claims by the Justice Department on behalf of the U.S. Environmental Protection Agency that some Jeep Grand Cherokee and Ram 1500 models contain pollution-control software that improperly limits pollution during lab tests while allowing the vehicles to spew excess emissions on the road. "Fiat Chrysler's conduct was serious and egregious".

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"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.

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 Fiat Chrysler settlement won't include a determination that the company committed wrongdoing, a second person familiar with the matter said. The company also agreed to buy back some vehicles, fix others, pay to mitigate environmental harm and settle lawsuits for a cost of more than US$30 billion. US officials refrained from accusing the vehicle manufacturer of intentionally creating software to cheat on emissions tests.

This settlement is not expected to outline any criminal charges. He declined to comment when asked about the status of the investigation. "Today's settlement sends a clear and strong signal to manufacturers and consumers alike - the Trump administration will vigorously enforce the nation's laws created to protect the environment and public health".

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