Published: Fri, January 11, 2019
Economy | By

Fiat Chrysler Slapped With $650 Million Fine For Emissions Scandal

Fiat Chrysler Slapped With $650 Million Fine For Emissions Scandal

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.

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. FCA also will pay another $400 million in total to the EPA, the U.S. Department of Justice (DOJ), CARB, all 50 states, and the U.S. Customs and Border Protection (CBP). 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.

FCA has agreed to pay almost $400 million in civil penalties, including $305 million to the EPA, the Department of Justice, and CARB; $6 million to Customs and Border Protection; and $72.5 million to various state attorneys general.

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.

"By concealing this software, Fiat Chrysler deceived regulators and violated environmental law", said Associate Attorney General Jesse Panuccio.

The state said Fiat Chrysler sold 100,000 of those vehicles nationwide and 13,325 in California.

In 2016, Volkswagen pleaded guilty to criminal charges and agreed to pay a $2.8 billion penalty to settle government lawsuits. The company has set aside more than $30 billion to cover costs and settlements, including $15 billion to buy back or fix vehicles in the U.S. VW's tally is past $25 billion in the USA alone.

Volkswagen AG in January 2017 pleaded guilty to criminal charges and agreed to pay some $4.3 billion in US penalties for its scheme to deliberately rig hundreds of thousands of USA diesel vehicles to cheat on emissions tests.

Representatives for Fiat Chrysler and the Justice Department declined to comment.

The Justice Department said the settlement does not resolve an ongoing criminal investigation into Fiat Chrysler's conduct.

The $25 billion Italian-American carmaker deceived consumers and the United States government by installing so-called defeat devices that "undermined important clean air protections", Andrew Wheeler, acting administrator of the Environmental Protection Agency, said yesterday.

Like this: