Half going to civil penalties.
Fiat Chrysler Automobiles has announced it has reached final settlements on all civil, environmental, and consumer claims in the United States over the diesel emissions violations. In total, the automaker will have to pay approximately $800 million (approx. £628 million) with $400 million (£314 million) going as civil penalties as follows:
- $305 million (£239 million) payable to the U.S. Environmental Protection Agency (EPA), U.S. Department of Justice (DOJ) and the California Air Resources Board (CARB) for environmental claims;
- $13.5 million (£10.6 million) to the California Attorney General for consumer claims and mitigation expenses;
- $72.5 million (£56.9 million) to various other state attorney generals for environmental and consumer claims;
- $6 million (£4.7 million) to Customs and Border Protection.
FCA will also conduct a service recall for about 100,000 vehicles from the Ram 1500 and Jeep Grand Cherokee models equipped with 3.0-litre V6 diesels to install new engine control software. The manufacturer says the reflash won’t affect average fuel consumption and overall drivability of the cars.
More emissions trouble for automakers:
- EU car sales plunge 23.5 percent due to new emissions rules
- UK car manufacturing slumps amid emissions test disruption
Meanwhile, each current and former owner, as well as lessee, of these vehicles will receive an average payment of $2,800 (£2,200) as part of the plaintiff steering committee settlement. Additionally, all of the affected vehicles will qualify for an extended warranty.
“We acknowledge that this has created uncertainty for our customers, and we believe this resolution will maintain their trust in us,” Mark Chernoby, FCA’s Head of North American Safety and Regulatory Compliance, commented. “We have implemented rigorous new validation procedures and updated our training programs to ensure continued compliance with the increasingly complex regulatory environment.”
FCA says it will contact affected customers and schedule service appointments in the near future. The manufacturer is still in the process of establishing the required logistics.
Check out the press release section below for more details.