Fiat Chrysler to pay customers, governments for cheating emissions tests

11 January, 2019, 15:40 | Author: Eric Barnett
  • News Fiat Chrysler to pay around $650M in emissions cheating case By MICHAEL BALSAMO and

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 settlement includes $311 million in total civil penalties, up to $280 million to resolve claims from diesel owners, and extended warranties worth $100 million. The recalled vehicles - which are equipped with the "EcoDiesel" 3.0-liter engines - are to be installed with new software.

The official announcement is expected to be made later this week by the US Department of Justice and the EPA. 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 $30 billion.

However, under the terms of the settlement, no admission of guilt is required from Fiat Chrysler. He said not only did Fiat Chrysler break the law but that it worked to hide its conduct. VW was found to have colluded with Bosch to pass US emissions only while its vehicles sensed they were being tested by federal agencies, while otherwise they operated in a completely different driving mode that polluted up to 40 times above the legal limit.

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.

The other $400 million will be split between consumers and remedy methods.

Fiat Chrysler said in a statement that it "maintains its position that the Company did not engage in any deliberate scheme to install defeat devices to cheat emissions tests". They will have their software updated free of charge, and FCA says it won't affect fuel economy or drivability. Owners will receive an average of $2,800 to obtain software updates as part of the emissions recall, Fiat Chrysler said.

The Justice Department filed a suit against Fiat Chrysler in 2017, alleging that it used illegal software to skirt emissions regulations, akin to what VW did that led to Dieselgate.

The Justice Department and company are also said to be nearing a settlement to resolve a two-year criminal investigation into whether it knowingly sold diesel vehicles that violated clean-air rules, according to two other people familiar with the matter.


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