Fiat Agrees To Settle Diesel Cases In Federal Court For $800 Million

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Image 1 of 18 FILE - In this Sept. 21, 2015 file photo, the Volkswagen Passat is displayed during a reveal event at the Brooklyn Navy Yard in New York. Volkswagen's emissions-cheating scandal took a serious bite out of the company's U.S. sales. The German automaker reports that November 2015 U.S. sales fell almost 25 percent from a year ago. The company blamed the decline on stop-sale orders for diesel-powered vehicles that the government says cheated on pollution tests.  less FILE - In this Sept. 21, 2015 file photo, the Volkswagen Passat is displayed during a reveal event at the Brooklyn Navy Yard in New York. Volkswagen's emissions-cheating scandal took a serious bite out of the ... more Photo: Kevin Hagen, FRE Fiat agrees to settle diesel cases in federal court for $800 million 1  /  18 Back to Gallery

SAN FRANCISCO (BCN)

California officials and Fiat Chrysler Automobiles N.V. today announced an approximately $800 million settlement of claims that the automaker used illegal software to cheat on the testing of pollution from diesel-powered vehicles.

The settlement must be approved by U.S. District Judge Edward Chen of San Francisco, who is presiding over a series of lawsuits filed against the car maker since 2017 by the U.S. Department of Justice, car owners and the state of California.

The agreement concerns 2014-2016 diesel Jeep Grand Cherokees and Dodge Ram 1500s.

California Attorney General Xavier Becerra said Fiat Chrysler is accused of installing the so-called defeat devices in 100,000 vehicles nationwide, including 13,325 vehicles in California.

The devices allegedly would turn on controls on smog-producing nitrous oxide emissions when cars were tested but would turn off the controls when the vehicles were on the road.

Fiat Chrysler said the settlement includes about $400 million in federal and state penalties plus an average of about $2,800 plus a free software update for car buyers.

The company, based in the Netherlands with a U.S. subsidiary in Michigan, does not admit to any wrongdoing in the settlement.

The investigation grew out of a probe of Volkswagen AG, which ended up paying more than $20 billion to settle criminal and civil cases with similar allegations.

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Mary Nichols, chair of the California Air Resources Board, or CARB, said, "This settlement is a direct result of the enhanced screening and testing procedures CARB developed to uncover the Volkswagen diesel cheating scandal."

"It is a testament to our ongoing commitment to clean the air," Nichols said.

Fiat Chrysler said it has implemented "rigorous new validation procedures and updated our training program" but said the settlement doesn't change its position that it did not engage in a deliberate scheme to cheat emissions tests.

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Source : https://www.sfgate.com/news/bayarea/article/Fiat-Agrees-To-Settle-Diesel-Cases-In-Federal-13523969.php

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