FCA To Pay $800 Million For Its Dirty EcoDiesel Engines

FCA To Pay $800 Million For Its Dirty EcoDiesel Engines

Fiat Chrysler agreed on Thursday to pay hundreds of millions of dollars, including a $300 million fine to the USA government, to settle allegations that the Italian-American automaker cheated on emissions tests.

The Justice Department said Fiat Chrysler must work with one or more vendors of aftermarket catalytic converters to improve the efficiency of 200,000 converters that will be sold in the 47 US states that do not already require the use of the California-mandated high-efficiency gasoline vehicle catalysts.

Fiat Chrysler won't admit wrongdoing in the settlement.

Fiat Chrysler is one of several big European carmakers to be charged in America with fitting vehicles with devices that allowed them to cheat diesel emissions tests.

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.

Owners of these vehicles will also receive a payment averaging US$2800 ($3900) and an extended warranty. 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. If Fiat Chrysler doesn't get at least 85% of the vehicles brought in for repairs, it will face additional fines.

"Fiat Chrysler broke those laws and this case demonstrates that steep penalties await corporations that engage in such egregious violations", Principal Deputy Associate Attorney General Jesse Panuccio told a news conference. He said not only did Fiat Chrysler break the law but that it worked to hide its conduct. 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.

Fiat Chrysler has agreed to pay over half a billion dollars in fines for using illegal software that produced inaccurate emissions tests results. About 500,000 VW vehicles were involved in the USA cheating scandal. The Fiat Chrysler settlement does not resolve any criminal allegations, according to Assistant Attorney General Jeffrey Clark.

"Fiat Chrysler deceived consumers and the federal government by installing defeat devices on these vehicles that undermined important clean air protections", EPA Acting Administrator Andrew Wheeler said in a prepared statement Thursday.