24 May 2017•Update: 24 May 2017
By Barry Eitel
SAN FRANCISCO
The Justice Department announced Tuesday it was suing Fiat Chrysler for using software to cheat on emissions tests with some of its vehicles.
The complaint was filed on behalf of the Environmental Protection Agency that said the suit involves 104,000 diesel-powered Ram pickup trucks and Jeep Grand Cherokee sport utility vehicles -- model years between 2014 and 2016.
The complaint said Fiat Chrysler Automobiles (FCA) used software known as a “defeat device” to cheat on the engine emissions tests.
Italian automaker Fiat acquired Chrysler in 2014 for $4.9 billion.
The EPA said FCA did not disclose at least eight software features on applications for emissions testing.
“The undisclosed software features lessen the effectiveness of the vehicles’ emissions control systems during certain normal driving situations,” the EPA said in an announcement. “This results in cars that meet emission standards in the laboratory and during standard EPA testing, but during certain normal on-road driving emit oxides of nitrogen that are much higher than the EPA-compliant level.”
The Fiat Chrysler case is similar in some aspects to the U.S. government’s lawsuit against Volkswagen for that company’s use of defeat devices on diesel cars. Last year, the German automaker paid a $14.7 billion fine to the EPA because of the scandal.
The lawsuit against FCA is different in scale – the VW suit involved more than 500,000 vehicles. This current court action is the first step in a process toward winning a settlement from FCA that denied any wrongdoing and said it would fight the lawsuit.
“The company intends to defend itself vigorously, particularly against any claims that the company engaged in any deliberate scheme to install defeat devices to cheat U.S. emissions tests,” FCA said in a statement.
FCA stock closed Tuesday at $10.32 per share, down more than 4 percent from the previous close.
