Fiat Chrysler pay $650 million to end emissions lawsuit

Fiat Chrysler will have to pay $650 million to settle charges over illegal use of engine emissions software in the USA, according to reports in North America.  

The United States Justice Department sued Fiat Chrysler in 2017 after illegal software that turned off pollution controls under certain driving conditions was reportedly found in the company’s 3.0-litre diesel engines. 

The United States Environmental Protection Agency claimed that the software enabled the engines to release higher than the document levels of pollutants.

Fiat Chrysler maintains it did nothing wrong and the software was a legitimate method for meeting emissions rules.

According to the New York Times, Fiat Chrysler has agreed to pay $650 million to settle the matter. It will also recall more than 100,000 Ram pick-ups and Jeep Grand Cherokee SUVs to update the engine software. When complete, each owner will receive $2500 (£1960) in compensation.

At least half of the $650 settlement will be divided between the federal Government and the State of California.

Market commentators in the USA claim that the Fiat Chrysler matter is deemed less serious than the scandal that affected Volkswagen, with the federal investigation stopping short of accusing the company of intentionally cheating emission tests. The settlement is a fraction of the reported total of $14 billion that Volkswagen has paid in fines and compensation since 2016.

In 2017, the Department for Transport in the UK carried out tests on the Jeep Grand Cherokee to see if it had broken any emission rules, but deemed no further action was necessary.

Fiat Chrysler UK has refused to comment on the matter, saying it was limited to vehicles sold in the USA.