Fiat-Chrysler group got caught in a diesel emission scandal again.
According to reports, the Italian-American corporation could pay up to $840 million in fines to the US Department of Justice for manipulation of their cars’ diesel emissions data. The company also said it has to pay an additional $258 million to settle matters associated with U.S. diesel emissions standards.
The increased charges come after an August court ruling by the National Highway Traffic Safety Administration came into effect, doubling penalties and imposing heavy fines on automakers failing to comply with emission and fuel efficiency standards.
Read more: BMW Fined $18 Million for Inflating Sales Figures
Moreover, the company also pleaded guilty to using fraudulent and illegal software to falsify information on various diesel emission tests.
And it is not the first time FCA has come under the scrutiny of the US Department of Justice since the manufacturer has a long and tumultuous history of failing to meet diesel emission standards. In 2016, the automaker also had to pay $77.3 million for being unable to comply with fuel economy requirements. Furthermore, back in September this year, FCA also agreed to pay a lump sum of $9.5 million for allegedly misleading investors over United States Vehicle Emission standards compliance.
The company’s emission scandal further extends to 2019, where it had to pay a $79 million fine after it failed to meet 2017’s emission protocols.
Over 104,000 vehicles belonging to FCA subsidiaries have already suffered a similar fate. For example, 2014 to 2016 models come equipped with 3.0 liter V6 diesel engines that are non-compliant with California Air Resources Boards (CARB) protocols.
So far, it is still unclear if FCA will settle down the charges and reach an agreement with the United States Department of Justice.
However, under NHTSA and increased CAFE penalties, the company might incur hefty penalties and additional fines on purchasing regulatory emissions credits.
To be continued…
Read more: Ford Must Purchase CO2 Emission Credits to Meet EU Targets
Source: Reuters
