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FCA Pleads Guilty Over Emissions Fraud, Fined $300 Million in Penalties

The U.S. business of Fiat Chrysler Automobiles (FCA US LLC), now part of Stellantis, has agreed to pay about $300 million in penalties as a part of a plea deal with U.S. Justice Department (DOJ) to resolve a years-long emissions fraud investigation on select vehicles with diesel engines, Reuters reported.
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Insiders familiar with the details said the FCA has agreed to pay penalties totaling $300 million. The company acknowledged its efforts evading requirements for more than 100,000 older Ram pickup trucks and Jeep SUVs that are part of its American line-up. The multi-year investigation only focused on Ram 1500 pickup trucks and Jeep Grand Cherokee sport-utility vehicles made from 2014 to 2016.

Around 2019, the United States Environmental Protection Agency (EPA) launched an investigation into potential emissions fraud by FCA US LLC on Dodge and Jeep Grand Cherokee diesel models. A pair of class action suits were filed against the company on behalf of drivers who bought or leased the affected vehicles.

They accused the company of allegedly violating the Clean Air Act. The automaker’s highlighted diesel engines were said to emit increased nitrogen oxides (NOx) driven in certain conditions (high speeds), and were using specific engine management software not disclosed to the U.S. agency. Consequently, the emissions levels increased under certain driving conditions.

In 2021, the world’s fifth-largest automaker said it was setting aside $283 (€266 million) in anticipation it might need to pay for the penalties over the fraud investigations.

The plea deal negotiated with the U.S. Department of Justice will be unveiled sometime next week. FCA would then enter its plea during the next hearing at a U.S. District court.

This deal comes five years after VW pleaded guilty to its own emissions scandal. Volkswagen paid $20 billion in penalties after investigators discovered the automaker used software to reduce emissions during tests.
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About the author: Humphrey Bwayo
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Humphrey is a car enthusiast whose love and passion for automobiles extended into collecting, writing, driving, and working on cars. He got his passion for cars from his Dad, who spent thousands of hours working on his old junky 1970 E20 Toyota Corolla. Years later, he would end up doing the same with a series of lemons he’s owned throughout his adult life.
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