Published: Fri, January 11, 2019
Markets | By Otis Pena

Fiat Chrysler Slapped With $650 Million Fine For Emissions Scandal

Fiat Chrysler Slapped With $650 Million Fine For Emissions Scandal

Fiat Chrysler has agreed to pay as much as $800 million to settle charges that it cheated diesel emissions tests.

The Associated Press reported Wednesday that a multi-part agreement would include civil penalties of roughly $311 million paid to federal and California regulators, in addition to $280 million to compensate drivers and $72 million to settle claims brought by other US states. First, FCA will recall approximately 100,000 examples of the 2014-2016 Ram 1500 EcoDiesel and Jeep Grand Cherokee EcoDiesel. The remaining $400 million covers a software update and payments to current and former vehicle owners in amounts that average $2800 per person. It will mark a milestone in the second major case brought by American officials against an automaker for Clean Air Act violations stemming from diesel vehicles equipped with pollution controls prohibited by USA law.

The case, announced by the state Department of Justice and the California Air Resources Board, is similar to the multibillion-dollar settlement made by Volkswagen over the use of the rogue software.

Fiat Chrysler will agree to corporate governance reforms meant to prevent future emissions violations under the agreement, the person said. If Fiat Chrysler doesn't get at least 85% of the vehicles brought in for repairs, it will face additional fines. The company will also need to pay about $280 million to compensate owners.

Ramsey To Become Second Highest Earner At Juventus After Ronaldo
He will be fondly remembered by Arsenal fans, most of whom wish he wasn't going. I want his focus to be on us, and to be on West Ham on Saturday.


The Fiat Chrysler settlement won't include a determination that the company committed wrongdoing, a second person familiar with the matter said. About 500,000 VW vehicles were involved in the US cheating scandal.

The settlement is the second between the USA government and an automaker over allegations of cheating on diesel emissions.

Asked about the message the settlement would send, acting Environmental Protection Agency Administrator Andrew Wheeler responded: "Don't cheat". 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.

At issue is what CARB calls "auxiliary emission-control devices" (in other words, software code) that can allow excess pollution at specific times, such as during a cold start or for dumping fuel to clean the particulate filter, that must be disclosed.

Like this: