Fiat Chrysler settles US emissions charges

Automaker Fiat Chrysler will spend at least $690mn to settle claims it violated state and federal law by installing software to cheat emissions tests in more than 100,000 vehicles.

That includes a settlement with US and California officials worth at least $515mn and a separate agreement with a New York-led coalition of nine states totaling $171mn.

"Today's settlement sends a clear and strong signal to manufacturers and consumers that EPA will vigorously enforce the nation's laws designed to protect the environment and public health," US Environmental Protection Agency acting administrator Andrew Wheeler said.

US officials say the automaker violated the federal Clean Air Act by installing the software in about 104,000 model year 2014-16 vehicles sold in the US and failing to disclose its existence. The software caused the vehicles' NOx emissions to stay within legal limits during testing and to increase in "real world" driving.

California, which helped uncover the existence of the software code, will receive $78.4mn of the settlement.

"The company not only violated the law and our trust, but did so at the expense of our environment," state attorney general Xavier Becerra (D) said.

The company did not immediately respond to a request for comment.

When the US government first notified Fiat Chrysler of the allegations in 2017, the company denied the charges.

The cost of the US-California settlement could rise to more than $800mn, depending on how many vehicle owners participate in a separate $300mn consumer settlement. Fiat Chrysler could also face additional penalties if it does not fix at least 85pc of the affected vehicles.

NOx emissions contribute to the formation of smog, which EPA says can exacerbate respiratory diseases such as asthma.

The allegations, which cover Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3.0 liter diesel engines, are similar to those levied against Volkswagen, which in 2017 agreed to spend about $20bn in total to resolve criminal and civil cases related to the use of illegal software in about 590,000 diesel vehicles sold in the US from 2009-2015.

The settlements do not resolve any possible criminal charges against Fiat Chrysler.