Fiat Chrysler pays $800m to settle emissions cheating claim

The EPA is investigating certain Ram 1500 pickups and Jeep Grand Cherokee SUVs for less-than-honest emissions test

The EPA is investigating certain Ram 1500 pickups and Jeep Grand Cherokee SUVs for less-than-honest emissions test

German auto supplier Robert Bosch GmbH will pay around $131 million to settle claims from Fiat Chrysler Automobiles NV U.S. diesel owners and resolve all investigations by 47 U.S. state attorneys general into its involvement with diesel vehicles.

According to the U.S. government, FCA used "illegal and undisclosed software" on 2014-2016 Ram 1500 and Jeep Grand Cherokee vehicles equipped with the 3.0-liter EcoDiesel V6 engine. Current and former owners and lessees are also eligible to receive a payment averaging $2,800.

Federal officials allege the vehicles, made between 2014 and 2016, were equipped with diesel engines programmed to run pollution controls during lab tests that would turn off under certain conditions on the road.

FCA has agreed to pay almost $400 million in civil penalties, including $305 million to the EPA, the Department of Justice, and CARB; $6 million to Customs and Border Protection; and $72.5 million to various state attorneys general. "Fiat Chrysler's conduct was serious and egregious".

Attorney General Xavier Becerra added, "The company not only violated the law and our trust, but did so at the expense of our environment".

Under the deal, the company may be subject to additional penalties if at least 85 per cent of the vehicles aren't repaired within two years.

FCA said that the total cost of owner compensation, extended warranties, and environmental mitigation is estimated at $400 million.

This on a day when Fiat Chrysler also agreed to a settlement in the neighborhood of $800 million.

Fiat Chrysler has agreed to pay over half a billion dollars in fines for using illegal software that produced inaccurate emissions tests results. VW was found to have colluded with Bosch to pass USA 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.

"Fiat Chrysler deceived consumers and the federal government by installing (hidden software) on these vehicles that undermined important clean air protections", said Andrew Wheeler, acting administrator of the U.S. Environmental Protection Agency.

"The settlements do not change the company's position that it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests", the automaker said.

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