Automobiles News

Fiat Chrysler Automobiles US ordered to pay $300M and serve probation in conspiracy to defraud emissions regulations

After a three-year investigation and court proceedings, the U.S. Department of Justice convicted Fiat Chrysler Automobiles US for conspiracy to cheat emission tests and will pay roughly $300 million and serve a three-year probation term.

“This case demonstrates the criminal division’s dedication to prosecuting companies that seek to place profits above full candor, good corporate governance and timely remediation,” said the DOJ Criminal Division in a press release from the U.S. Department of Justice. 

The court found that FCA US intentionally defrauded U.S. regulators on emissions control systems and customers on the EcoDiesel engines. More than 100,000 Jeep Grand Cherokees and Ram 1500 diesel vehicles from 2014 to 2016.

FCA US created a specific marketing campaign for the Jeep Grand Cherokee and Ram 1500 vehicles being sold in the U.S. that the newly developed 3.0 diesel engine were “clean EcoDiesel” vehicles with best-in-class fuel efficiency, according to the press release. However, software features were installed in the vehicles to trick the emission standards checks while still offering the fuel efficiency and performance as marketed to the customer. 

“Stopping violations of environmental laws and the defrauding of consumers is paramount to the protection of clean air and human health,” the U.S. Environmentally Protection Agency stated in the release. 

According to the press release, the DOJ reached the penalty and resolution in the case against FCA US due to the offense’s severe conduct, the company’s failure to openly disclose the fraudulent actions, and its lack of commitment to take responsibility and respond with timely remedial measures. However, the press release added moving forward, the FCA US did receive credit for cooperation with the department’s investigation and has committed to a further enhanced compliance program.

Source link

Leave a Comment