FCA has agreed to a settlement worth $800 million to resolve claims from the U.S. Justice Department and state of California that it used illegal software to produce false results on diesel-emissions tests. This included $311 million in total civil penalties to U.S. and California regulators, up to $280 million to resolve claims with diesel owners, and an additional $105 million for extended warranty values. FCA stands firmly behind that the company is not admitting liability, nor did they engage in any deliberate scheme to cheat emissions tests. According to the Justice Department it covers 104,000 Fiat Chrysler 2014-16 Ram 1500 and Jeep Grand Cherokee diesels.
German auto supplier Robert Bosch GmbH, the provider of the emissions control software, agreed to pay $27.5 million to diesel owners. The FCA stated that owners will receive around $2,800 to have software updates as part of the emissions recall. Bosch also stated that it did not accept liability. The moral of the story is don’t try and cheat the system because someone is going to catch it. Though FCA shares are still up. The settlement will be open for public comment for 30 days before a federal judge decides whether to approve the agreement.
Written by: Andee Oehm
Image Credit: FCA