Plus   Neg

Fiat Chrysler To Pay $800 Mln To Settle U.S Suit On Diesel Emissions

Fiat Chrysler Automobiles N.V. (FCAU) said that its wholly owned subsidiary FCA US LLC has reached final settlements on civil, environmental and consumer claims with the U.S. Environmental Protection Agency or EPA, U.S. Department of Justice, the California Air Resources Board or CARB, the State of California, 49 other States and U.S. Customs and Border Protection, agreeing to pay about $400 million in civil penalties to resolve differences over diesel emissions requirements.

FCA US has also settled a putative class action on behalf of private consumers. Customer compensation, the estimated future cost of the extended warranty and the cost of environmental mitigation efforts also account for approximately $400 million. The resulting $800 million total is in line with the financial charge taken by the Company for this purpose in third quarter, 2018.

Fiat Chrysler noted that 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. Further, the consent decree and settlement agreements contain no finding or admission with regard to any alleged violations of vehicle emissions rules.

The company noted that FCA US will conduct an emissions recall to update emission control software in an estimated 100,000 model-year 2014-2016 Ram 1500 pickups and Jeep Grand Cherokee SUVs equipped with 3.0-liter EcoDiesel V-6 engines. The software reflash does not affect average fuel economy, drivability, durability or refinement of the vehicles.

Each current and former owner and lessee of these vehicles will be eligible to receive a payment averaging $2,800 as part of the plaintiff steering committee settlement. The affected vehicles will also qualify for an extended warranty in connection with the software update.

The settlements are now lodged with the San Francisco division of the United States District Court, North District of California, where they await judicial approval.

The approximately $400 million in civil penalties includes: $305 million payable to the U.S. Environmental Protection Agency, U.S. Department of Justice and the California Air Resources Board for environmental claims; $13.5 million to the California Attorney General for consumer claims and mitigation expenses; $72.5 million to various other state attorneys general for environmental and consumer
claims; $6 million to Customs and Border Protection.

In addition, FCA US will pay $19 million to the State of California for emissions mitigation initiatives, while also financing the upgrade of 200,000 high-efficiency catalytic converters through the aftermarket.

For comments and feedback contact: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Shares of STMicroelectronics NV were gaining around 5 percent in Paris and Italy after the Geneva-based semiconductor company on Thursday reported higher earnings and revenues in its fourth quarter, above market estimates. Gross margin, meanwhile, was lower than last year. Further, the company warned on its first-quarter revenues. Consumer goods giant Procter & Gamble Co. on Wednesday reported a 28 percent increase in profit for the second quarter from last year, when results were impacted by a charge related to the U.S. tax reform. Both revenue and core earnings per share for the quarter beat analysts' estimates. Looking ahead, the company affirmed its outlook for fiscal 2019 earnings. LSEG Technology, London Stock Exchange Group's technology solutions provider, said it has been selected by Atom Group, a fintech company focused on blockchain technology and emerging digital assets, to power its new Hong Kong-based digital asset exchange AAX. The new digital exchange, which is expected to launch in the first half of fiscal 2019, will use LSEG's Millennium Exchange matching engine.
Follow RTT