Fiat Chrysler’s Diesel Era Ends in a Costly Settlement

Fiat Chrysler’s Diesel Era Ends in a Costly Settlement

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Under the settlement announced Thursday, the company will pay $305 million in civil penalties in connection with those claims and another $6 million over allegations of illegally importing noncompliant vehicles.

It will also pay $19 million to mitigate excess emissions from noncompliant vehicles in California, which also sued the company.

“Fiat Chrysler’s effort to defeat emissions controls is a clear violation of the law, and they also tried to hide their actions,” the E.P.A.’s acting administrator, Andrew Wheeler, said in a conference call. “The E.P.A. caught them cheating.”

As part of the agreement, Fiat Chrysler will recall about 100,000 diesel-powered Ram 1500 trucks and Jeep Grand Cherokee sport-utility vehicles from the 2014, 2015 and 2016 model years. The recall repair involves installing new software in the vehicles and providing extended warranties, at a total cost of up to $185 million, the Justice Department said.

Fiat Chrysler said vehicle owners could expect the recall later this year.

In addition, owners will be eligible for compensation of $990 to $3,075 from Fiat Chrysler and Bosch, a German company that supplied engine computers and software. That agreement that could cost up to $300 million. Fiat Chrysler said it would bear an estimated $280 million of that cost.

The Justice Department said the settlement did not resolve any potential criminal liability.

“A multinational bad actor has seriously violated American emissions laws, to the detriment of the health and welfare of the American people,” said Jeffrey Clark, assistant attorney general in the department’s Environment and Natural Resources Division.

Fiat Chrysler, however, has said that its software did not amount to an illegal defeat device. “Our position on that hasn’t changed,” said Eric Mayne, a company spokesman.

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