Fiat-Chrysler to pay more than $300 million in emissions cheating settlement

The Jeep Grand Cherokee and Eco Diesel Ram 1500 for 2014-2016 were designed to defeat emissions tests resulting in much higher levels of pollution spewed into the air than allowed by US law

Fiat-Chrysler to pay more than $300 million in emissions cheating settlement

Fiat Chrysler announced Thursday that it has reached final settlements with both United States regulators and private class-action lawsuits regarding allegations of excessive diesel vehicle emissions.

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.

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.

The auto giant will recall and fix more than 100,000 diesel vehicles sold in the United States at a cost of about $185 million. Fiat Chrysler will pay them up to $2,800 per vehicle.

The automaker will recall approximately 100,000 vehicles including model year 2014-2016 Jeep Grand Cherokees and Ram pickup trucks for the software update.

The added costs beyond the fines and payments to vehicle owners are for various mitigation efforts to curb emissions, and for future warranty costs.

Fiat Chrysler says the violations of emissions standards by 100,000 vehicles was unintentional

The Justice Department also opened a criminal investigation into Fiat Chrysler's conduct, and several state attorneys general also were investigating.

But the deal does not include any admission of guilt or wrongdoing by the automaker. Bosch, an FCA supplier, will pay an additional $27.5 million.

But Fiat Chrylser has always maintained that it did nothing wrong and that the software for its diesel auto engines is a legitimate way to meet emissions rules.

Fiat Chrysler said in a statement that it "maintains its position that the Company did not engage in any deliberate scheme to install defeat devices to cheat emissions tests".

"We acknowledge that this has created uncertainty for our customers and we believe this resolution will maintain their trust in us", said Mark Chernoby, the company's Head of North American Safety and Regulatory Compliance. Asked about the criminal case on Tuesday, Fiat Chrysler said it wouldn't comment on speculation.

While it may not have carried the cachet of Dieselgate, Fiat Chrysler Automobiles was mired in its own diesel scandal, and a settlement has finally been reached in its court cases. The announcement was made during the final days of the Obama administration.

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