Fiat Chrysler agrees to USA diesel-emissions settlement worth $800M US

Fiat Chrysler agrees to USA diesel-emissions settlement worth $800M US

Fiat Chrysler agreed on Thursday to pay hundreds of millions of dollars, including a $300 million fine to the USA government, to settle allegations that the Italian-American automaker cheated on emissions tests.

The settlement includes $311 million in total civil penalties, up to $280 million to resolve claims from diesel owners, and extended warranties worth $100 million.

The recall and federal mitigation programs are estimated to cost up to $185 (£145 / €160) million, while FCA will fork over another $19 (£14.9 / €16.5) million to mitigate excess emissions from vehicles in California.

The case involves diesel Jeep Grand Cherokees and Dodge Ram 1500s made from 2014 to 2016.

Fiat Chrysler won't have to admit wrongdoing and will agree to pay owners of roughly 104,000 diesel-powered SUVs and pickups to update the emissions software on the vehicles via a recall, said the person, who spoke on the condition of anonymity to discuss the agreement before it was announced.

The case, announced by the state Department of Justice and the California Air Resources Board, is similar to the multibillion-dollar settlement made by Volkswagen over the use of the rogue software.

Fiat Chrysler said in a statement that it "maintains its position that the Company did not engage in any deliberate scheme to install defeat devices to cheat emissions tests".

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The settlement resolves allegations that FCA used illegal software to get about 100,000 diesel trucks past laboratory emissions inspections and onto US roads. The company has set aside more than $30 billion to cover costs and settlements, including $15 billion to buy back or fix vehicles in the U.S.

However, under the terms of the settlement, no admission of guilt is required from Fiat Chrysler.

"Fiat Chrysler deceived consumers and the federal government by installing (hidden software) on these vehicles that undermined important clean air protections", said Andrew Wheeler, acting administrator of the U.S. Environmental Protection Agency.

The Justice Department also opened a criminal investigation into Fiat Chrysler's conduct, and several state attorneys general also were investigating.

Representatives for Fiat Chrysler and the Justice Department declined to comment.

The settlement is not expected to outline any criminal charges, according to ABC News.

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