WASHINGTON, D.C. — Fiat Chrysler will pay more than $500 million in settlements, product recalls and civil penalties with the federal government and the state of California to resolve allegations of cheating on emissions tests, and violating the Clean Air Act as well as state law.
According to the U.S. Department of Justice (DOJ), the EPA and the state of California, Fiat Chrysler used "defeat devices" in order to cheat on its 2014 through 2016 Ram 1500 and Jeep Grand Cherokee cars that had "EcoDiesel" engines.
“The Department of Justice is committed to the full and fair enforcement of the laws that protect our nation’s environment,” principal deputy associate attorney general Jesse Panuccio said in a statement. “Fiat Chrysler broke those laws and this case demonstrates that steep penalties await corporations that engage in such egregious violations."
“Fiat Chrysler deceived consumers and the federal government by installing defeat devices on these vehicles that undermined important clean air protections,” added EPA acting administrator Andrew Wheeler. “[This] settlement sends a clear and strong signal to manufacturers and consumers that EPA will vigorously enforce the nation’s laws designed to protect the environment and public health.”
The settlement includes the recall and repair of more than 100,000 "noncompliant," diesel cars by Fiat Chrysler that is expected to cost around $185 million. The company will also pay a $305 million civil penality and institute a program to deal with the excess pollution caused by its faulty cars. The settlement with California includes Fiat Chrysler paying $19 million to deal with the excess emissions from more than 13,000 cars in that state. Fiat Chrysler also will pay a $6 million civil penalty to the U.S. Customs and Border Protection for the illegal import of noncompliant cars, according to the DOJ.