Fiat Chrysler Automobiles NV (FCAU) will pay more than $650 million to settle allegations that it fudged emissions tests on its SUVs and Ram pickup trucks.
The Italian-American automaker will be required to pay around $311 million in fines to the federal government and California regulators, the Associated Press reported, citing a person with the knowledge of the settlement.
Under the agreement, the company also will need to pay about $280 million to compensate vehicle owners - resulting in payouts of about $2,800 per owner - as well as another $72 million to settle claims made by other states, the AP reported.
U.S. federal officials have alleged that the 104,000 Jeep Grand Cherokees and Ram pickups, 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.
Fiat Chrysler won't admit wrongdoing as part of the settlement. The company has said its software met all legal requirements and it didn't intend to break the law, according to reports.
The settlement, which is expected to be formally announced Thursday by the U.S. Justice Department and the Environmental Protection Agency, is the second between the U.S. government and an automaker over diesel emissions-cheating allegations.
Separately, Robert Bosch GmbH, a German auto supplier that produced some of the components for the Fiat Chrysler diesel engines, is expected to announce it will settle suits from U.S. owners for $30 million, according to Reuters.
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