Fiat Chrysler accused of cheating emissions laws by EPA
The Environmental Protection Agency has accused auto maker Fiat Chrysler Automobiles (FCA) of violating emissions standards in over 100,000 diesel vehicles, similar to what happened with Volkswagen in its worldwide emissions scandal, and prompted by the regulators’ probe into Volkswagen, according to a story on Reuters.
The action by US regulators sent shares of FCA plunging by roughly 14% and by as much as 18% in the US after Reuters broke the news.
The accusations by the EPA calls out 104,000 trucks and SUVs in the US, sold since 2014, and the maximum fine is said to be around $4.6bn. The agency, along with the California Air Resources Board, apparently told Fiat Chrysler that it believed its undeclared auxiliary emissions control software allowed the vehicles to generate more pollution than was allowed by the law, making the vehicles in violation.
“We have done nothing that is illegal. There was never any intent of creating conditions that were designed to defeat the testing process,” said Fiat Chrysler CEO Sergio Marchionne in the story, who said that FCA had been in talks with the EPA and had made numerous disclosures of its documents.
The EPA regulators, meanwhile, said that Fiat Chrysler failed to disclose engine management software in over 100,000 Dodge Ram 1500 trucks and Jeep Grand Cherokees with 3.0 liter diesel engines, which resulted in increased nitrogen oxides emissions.
"Failing to disclose software that affects emissions in a vehicle’s engine is a serious violation of the law, which can result in harmful pollution," said Cynthia Giles, an EPA official, in a statement as part of the story.
FCA is contesting the charge and will prove that its emissions controls are justified, meaning the case will be pushed into the administration of incoming President Donald Trump.
FCA US released a statement on its website stating its disappointment in the EPA’s decision to issue notice of a violation on the company’s “2014-2016 model year light duty 3.0-liter diesel engines,” but it said it would work with the administration to present its case and “resolve this matter fairly and equitably to assure the EPA and FCA US customers that the company’s diesel-powered vehicles meet all applicable regulatory requirements.”
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