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

Marco Green
January 10, 2019

Fiat Chrysler will pay more than $650 million to settle allegations of cheating on emissions tests.

The resolution would include a financial penalty in line with Fiat Chrysler's guidance to investors, one of the people said. Fiat Chrysler set aside $810 million in October for expenses related to all diesel probes.

That's according to a person with knowledge of the settlement but unauthorized to discuss it publicly who spoke Wednesday to The Associated Press on condition of anonymity.

The company is not expected to make any hardware changes to the vehicles and the fix will not impact the vehicle's fuel economy, two people said.

Fiat-Chrysler and the Department of Justice each declined to comment when reached by ABC News. Among the terms, Fiat Chrysler would be required to hire an independent monitor to oversee the carmaker's compliance programs, the person said.

The Justice Department also opened a criminal investigation into Fiat Chrysler's conduct, and several state attorneys general also were investigating. The company has denied intentional wrongdoing. Four months later, the Justice Department sued on the EPA's behalf alleging that software on diesel engines allowed them to emit more pollution on the road than during EPA lab tests.

The government accused FCA of putting eight "software-based features" on 3-liter V6 engines that powered the Jeep and Ram vehicles.

The Environmental Protection Agency and California Air Resources Board in January 2017 alleged Fiat Chrysler sold 104,000 diesel-powered SUVs and pickups that violated USA emissions regulations.

The Justice Department sued Fiat Chrysler in May 2017, accusing it of illegally using software that led to excess emissions in 104,000 U.S. diesel vehicles from the 2014-2016 model years.

VW also paid $4.3 billion in 2017 in United States civil and criminal fines and pleaded guilty to three criminal felony counts to resolve the Justice Department's investigation.

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

Volkswagen pleaded guilty in Detroit in 2017 to conspiring to defraud regulators, obstruction of justice and making false statements. Owners of such vehicles could get up to US$ 2,800 each.

Separately, Robert Bosch GmbH, a German auto supplier that made some components for the Fiat Chrysler diesel engines, is expected to announce it will settle suits from USA owners for $30 million, one person said.

Other reports by Click Lancashire

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