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Wednesday, 25 May 2022 13:54

Fiat Chrysler Reaches $300 Million Plea Deal Following Emissions Fraud Probe

Written by Joey Klender, Teslarati

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Fiat Chrysler Automobiles (FCA) has reached a $300 million plea deal after pleading guilty to criminal conduct concerning an emissions fraud probe involving its vehicles with diesel engines, a new report from Reuters said.

The U.S. business of FCA is the only unit affected, according to the report, which cited people familiar with the matter.

 

FCA was accused of evading emissions requirements on more than 100,000 Ram pickup trucks and Jeep-brand SUVs manufactured between 2014 and 2016 and ultimately decided to plead guilty to the charges.

 

FCA negotiated the plea deal with U.S. Department of Justice officials, and it could be announced as soon as early June, “though the timing could slip,” the report said. The automaker will enter the guilty plea during a hearing after the Department of Justice makes its announcement of the plea deal.

 

The negotiations between FCA and the department to resolve the probe has gone on far too long and has spread across several different presidential administrations as it was unclear whether the automaker was planning to plead guilty. The Department of Justice was also unsure of what punishment would be handed down if the automaker did plead guilty.

 

The case is similar to the 2017 plea deal German automotive company Volkswagen took after admitting in 2015 to using cheat devices in more than 600,000 TDI vehicles to pass emissions testing. Just days before the announcement, the EPA ordered the recall of affected vehicles manufactured between 2009 and 2015. Volkswagen stock collapsed, losing 20% of its value the day after the announcement had cheated on emissions.

 

In July 2020, Volkswagen returned more than $9.5 billion to car buyers. Those who purchased “Clean Diesel” vehicles from either VW or Porsche were given two options...


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