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11 January 2019, 03:42 | Joann Bryant
Fiat-Chrysler to pay more than $300 million in emissions cheating settlement: Source
Fiat Chrysler agreed on Thursday to pay hundreds of millions of dollars, including a $300 million fine to the USA government, to settle allegations that the Italian-American automaker cheated on emissions tests.
FCA has agreed to pay almost $400 million in civil penalties, including $305 million to the EPA, the Department of Justice, and CARB; $6 million to Customs and Border Protection; and $72.5 million to various state attorneys general.
"With this settlement, we are holding FiatChrysler accountable and securing important funds for environmental protection efforts". For example, someone who owned an affected vehicle on January 12, 2017, and who completes the software update will receive $3,075, according to the Plaintiffs' Committee for Fiat Chrysler-Dodge-Jeep EcoDiesel Litigation. FCA also will pay another $400 million in total to the EPA, the U.S. Department of Justice (DOJ), CARB, all 50 states, and the U.S. Customs and Border Protection (CBP).
Under a deal with the Justice Department and the Environmental Protection Agency, the automaker will recall and fix the more than 104,000 out-of-compliance Jeep SUVs and Ram pickup trucks.
Under the deal, the company will also need to pay about $280 million to compensate vehicle owners - resulting in payouts of about $2,800 per owner - as well as another $72 million to settle claims made by other states, the person said. Four months later, the Justice Department sued on the EPA's behalf alleging that software on diesel engines allowed them to emit more pollution on the road than during EPA lab tests. VW's tally is past $25 billion in the USA alone.
The Justice Department also opened a criminal investigation into Fiat Chrysler's conduct, and several state attorneys general also were investigating.
The other $400 million will be split between consumers and remedy methods. They will have their software updated free of charge, and FCA says it won't affect fuel economy or drivability.
"The settlements do not change the company's position that it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests", said the company's statement. Owners will receive an average of $2,800 to obtain software updates as part of the emissions recall, Fiat Chrysler said.
This settlement is not expected to outline any criminal charges.
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