Fiat Chrysler Automobiles and a German auto supplier have agreed to settle claims and lawsuits concerning 3.0-liter V-6 diesel engines installed in 104,000 Jeep Grand Cherokee EcoBoost and Ram 1500 EcoBoost models sold in the U.S. in the 2014 to 2016 model-years.
The U.S. Department of Justice and California regulators claimed software containing illegal auxiliary controls allowed the engines to emit "substantially" greater than permitted levels of nitrogen oxide.
FCA's total liability is said to be almost $800 million that includes:
- $311 million in civil penalties to U.S. and California regulators.
- $280 million to settle a lawsuit by owners, averaging out to about $2,800 each.
- $75 million to fund ongoing state-level investigations and in compensation for excess emissions already released.
- $72.5 million for state civil penalties, and $33.5 million in payments to California to offset excess emissions and consumer claims.
German engine component supplier Robert Bosch GmbH will pay $103.5 million to regulators in 47 U.S. states and another $27.5 to settle its part of the owners’ lawsuit, according to the report.
FCA has consistently denied any wrongdoing. The company updated its software and had its U.S.-sold diesel engines recertified in 2017.
FCA and other manufacturers selling diesels have been under intense scrutiny since the Volkswagen emissions scandal erupted in 2015. VW has paid fines totaling more than $25 billion to U.S. regulators, car buyers, and dealers to settle claims involving at least 500,000 vehicles. In January 2018, Mercedes-Benz officially withdrew its diesels from the U.S., leaving roughly a dozen diesel-powered cars and trucks on the market heading into the 2019-MY.
Editor's note: This story first appeared on AutoDealerTodayMagazine.com, a Bobit Business Media publication.