Sunday, 20 January, 2019


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

News Fiat Chrysler to pay around $650M in emissions cheating case By MICHAEL BALSAMO and Fiat-Chrysler to pay more than $300 million in emissions cheating settlement: Source
Conrad Doyle | 11 January, 2019, 15:39

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

The settlement is scheduled to be announced Thursday by the Justice Department in Washington, the person said.

Separately, Fiat Chrysler also agreed to pay $280 million to settle lawsuits brought by vehicle owners - leading to payouts of about $2,800 per owner - and will pay $19 million to California to settle similar state regulatory allegations. 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 US law. Fiat Chrysler will pay them up to $2,800 per vehicle. To receive the payments, the vehicle owners will have get their cars repaired.

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.

The remaining funds will go to civil fines and mitigation payments to the United States and the state of California.

The Justice Department also opened a criminal investigation into Fiat Chrysler's conduct, and several state attorneys general also were investigating. VW installed cheating software on almost a half-million diesel cars sold in the country. 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 company said the software is there to protect the engine from damage during testing rather than to cheat on emissions tests.

"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 in a statement. But it said that the charges against the company "has created uncertainty for our customers, and we believe this resolution will maintain their trust in us". Asked about the criminal case on Tuesday, Fiat Chrysler said it wouldn't comment on speculation.

As part of the settlement, Fiat Chrysler did not admit any wrongdoing. The announcement was made during the final days of the Obama administration. "Further, the consent decree and settlement agreements contain no finding or admission with regard to any alleged violations of vehicle emissions rules". But it did not drop the case against Fiat Chrysler. "This is why enforcement and compliance are top priorities for the EPA".

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