Fiat Chrysler pay $650 million to end emissions lawsuit

Published 10 January 2019

Fiat Chrysler will have to pay $650 million to settle charges over illegal use of engine emissions software in the USA, according to reports in North America.  

The United States Justice Department sued Fiat Chrysler in 2017 after illegal software that turned off pollution controls under certain driving conditions was reportedly found in the company’s 3.0-litre diesel engines. 

The United States Environmental Protection Agency claimed that the software enabled the engines to release higher than the document levels of pollutants.

Fiat Chrysler maintains it did nothing wrong and the software was a legitimate method for meeting emissions rules.

According to the New York Times, Fiat Chrysler has agreed to pay $650 million to settle the matter. It will also recall more than 100,000 Ram pick-ups and Jeep Grand Cherokee SUVs to update the engine software. When complete, each owner will receive $2500 (£1960) in compensation.

At least half of the $650 settlement will be divided between the federal Government and the State of California.

Market commentators in the USA claim that the Fiat Chrysler matter is deemed less serious than the scandal that affected Volkswagen, with the federal investigation stopping short of accusing the company of intentionally cheating emission tests. The settlement is a fraction of the reported total of $14 billion that Volkswagen has paid in fines and compensation since 2016.

In 2017, the Department for Transport in the UK carried out tests on the Jeep Grand Cherokee to see if it had broken any emission rules, but deemed no further action was necessary.

Fiat Chrysler UK has refused to comment on the matter, saying it was limited to vehicles sold in the USA.

Comments

conman    on 10 January 2019

Where's the poor VW's owners pay out!!!

Honestjohn    on 11 January 2019

They got one in the USA because tighter NOx standards in the USA meant that many of the cars could not be 'fixed' as they were in Europe to conform to Europe's lower NOx standards. There were a lot of buybacks. Massive carparks of bought-back VWs sitting in the desert.

HJ

Engineer Andy    on 11 January 2019

I wonder if all those 'buy back' VWs will end up as taxis south of the border in Mexico and other South American countries?

Brit_in_Germany    on 12 January 2019

So VW had to pay $20billion and Chrysler only $650 million. Sounds fair.

   on 14 January 2019

This was slipped in very quietly! So when will 'honest john' start banging on about fiatchryslergate?

Jim Donald    on 14 January 2019

I wouldn't own either make so it doesn't worry me. I wonder if it's effected there sales much?

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