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

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

Fiat Chrysler will pay about $800 million to settle charges that its diesel vehicles sold in the United States had improper software that allowed it to violate emissions rules.

Fiat Chrysler will also pay fines totalling around US$400 ($557 million) to various government agencies, with US$305 million ($425 million) going to the US Environmental Protection Agency, Department of Justice and the California Air Resources Board.

The specific vehicles to be recalled include diesel-powered Ram 1500 and Jeep Grand Cherokee from the 2014-2016 model years.

FCA also settled a class action lawsuit over the diesel issue and this means current and former owners will be eligible to receive a payment of approximately $2,800 (£2,195 / €2,434). Authorities say the vehicles were equipped with diesel engines programmed to run pollution controls during lab tests that would turn off under certain conditions on the road.

The Justice Department said Fiat Chrysler must work with one or more vendors of aftermarket catalytic converters to improve the efficiency of 200,000 converters that will be sold in the 47 US states that do not already require the use of the California-mandated high-efficiency gasoline vehicle catalysts. The company also agreed to buy back some vehicles, fix others, pay to mitigate environmental harm and settle lawsuits for a cost of more than $30 billion. The practice was discovered in September 2015 when Volkswagen admitted to using them.

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The settlement comes nearly exactly two years since regulators first accused Fiat Chrysler of cheating on the tests. About 500,000 VW vehicles were involved in the US cheating scandal. He said not only did Fiat Chrysler break the law but that it worked to hide its conduct.

The other $400 million will be split between consumers and remedy methods.

Bosch must "refuse to accommodate requests for software development and programming that could result in the installation of defeat device software", the New York Attorney General's Office said as part of the settlement. FCA said the software update, which should be available to owners later this year, will not affect fuel economy or performance.

The Justice Department filed a suit against Fiat Chrysler in 2017, alleging that it used illegal software to skirt emissions regulations, akin to what VW did that led to Dieselgate.

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