Fiat Chrysler Automobiles (FCA) has recently settled a lawsuit for $800 million with the United States government over allegations of cheating on emissions tests. This settlement agreement is a significant blow to the automaker, as it is one of the largest penalties ever paid by an automaker for emissions cheating.
The lawsuit was initially filed in May 2017 by the United States Department of Justice (DOJ) and the Environmental Protection Agency (EPA). The lawsuit alleged that FCA used illegal software on over 100,000 diesel-powered Ram 1500 and Jeep Grand Cherokee vehicles to cheat on emissions tests. Specifically, the software was designed to allow the vehicles to emit more pollution than allowed by law during normal driving conditions.
FCA denied any wrongdoing and stated that the software was designed to improve engine performance and was not intended to cheat on emissions tests. However, the settlement agreement requires FCA to pay $305 million in civil penalties to the EPA, California Air Resources Board, and the state of California. The company must also spend $75 million to improve emissions testing and $19 million to mitigate excess pollution.
Additionally, FCA has agreed to recall and repair the affected vehicles to bring them into compliance with emissions standards. The recall will include approximately 100,000 diesel-powered Ram 1500 and Jeep Grand Cherokee vehicles, with repairs expected to cost around $185 million.
The settlement agreement comes after a series of similar cases involving other automakers, including Volkswagen and General Motors. These cases highlight the increasing scrutiny on emissions cheating and the importance of automakers following environmental regulations.
As part of the settlement agreement, FCA must also implement reforms to prevent future violations. These include the appointment of an independent monitor to ensure compliance with emissions regulations and the establishment of a whistleblower program to encourage employees to report violations.
In conclusion, the Fiat Chrysler settlement agreement serves as a reminder that automakers must comply with environmental regulations and that cheating on emissions tests will not be tolerated. The $800 million settlement is a significant penalty for FCA and emphasizes the importance of following regulations to protect the environment and public health.
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