FCA Gets Government Subpoenas Over Alleged Diesel Emissions Violations

Fiat Chrysler Automobiles revealed that it has received subpoenas from federal and state authorities over alleged cover up of diesel emissions in some of its vehicles.

In a Securities and Exchange Commission filing on Tuesday, FCA reported that agencies such as SEC and U.S. Department of Justice have delivered subpoenas to the automaker. The company says it will be fully cooperative.

FCA has “received various inquiries, subpoenas and requests for information from a number of governmental authorities, including the U.S. Department of Justice, the SEC and several states’ attorneys general. We are investigating these matters and we intend to cooperate with all valid governmental requests,” FCA said in its annual SEC report.

On Jan. 12, the company acknowledged that the Justice Department was investigating the matter. On that same day, FCA CEO Sergio Marchionne denied the allegations, calling them “unadulterated hogwash.” The company never attempted to create emissions cheating software, he said.

In early February, a person familiar with the matter said that the Justice Department had been involved in the investigation for more than six months. That came from getting notified in July by the U.S. Environmental Protection Agency.

In January, the EPA and California Air Resources Board issued notices of violation to FCA for alleged software that increases air pollution on certain Jeep and Ram diesel vehicles – 2014, 2015 and 2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3.0 liter diesel engines sold in the U.S. That comes to about estimated 104,000 affected vehicles.

The EPA and CARB accused the automaker of not disclosing emission control software that it is legally required to. The notices of violation claimed the software adversely affects NOx emissions similarly to what Volkswagen has admitted to doing.

At that time, EPA said the maximum possible fine against FCA could be $4.6 billion.

In its annual report, the company said it can’t predict the outcome of the investigations.

SEE ALSO:  US EPA and California Allege Undisclosed Diesel Emissions Controls On Fiat-Chrysler Jeep and Ram Trucks

The company disclosed that “the resolution of these matters could have a material adverse effect on our financial position, results of operations or cash flows and may adversely affect our reputation with consumers, which may negatively impact demand for our vehicles.”

The automaker is also facing investigation by European investigators for emissions violations. The French government said earlier this month that it had asked a prosecutor to investigate FCA’s diesel vehicles.

FCA in its annual report predicted that regulatory scrutiny “is expected to remain high.”

Automotive News


More Hybrid News...