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Fiat Chrysler Emissions Fraud Litigation

Fiat Chrysler Emissions Fraud Litigation

No longer accepting claims for this case

Allegations have been made that auto manufacturer Fiat Chrysler Automobiles installed emissions cheating software in certain diesel vehicles for model years 2014 to 2016. Investigations conducted by the EPA and the California Air Resources Board (CARB) determined that the vehicles produced increased emissions of nitrogen oxides (NOx) on the road compared to levels shown under test conditions. Fiat Chrysler, however, failed to disclose the use of alleged emissions control devices in the vehicles, in violation of the federal Clean Air Act.

Motley Rice represents owners and lessees with potential claims. Co-founder Joe Rice serves on the Plaintiffs’ Steering Committee for multidistrict litigation, In re Chrysler-Dodge-Jeep EcoDiesel Marketing, Sales Practice and Products Liability Litigation, filed in the Northern District of California. He also was one of the lead negotiators in the nearly $15 billion Volkswagen “Clean Diesel” Emissions Fraud settlement for 2.0-liter Volkswagen and Audi vehicles, the largest auto-related consumer class action settlement in U.S. history, as well as the settlement for the 3.0-liter Volkswagen, Audi and Porsche vehicles.

The FCA settlement is estimated to total about $800 million. Current owners may receive up to $3,075; current lessees may receive up to $990; former owners and lessees may also receive up to $990. Payment depends on time of ownership or lease.

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Affected Diesel Vehicles

Roughly 104,000 “EcoDiesel” Fiat Chrysler vehicles are alleged to have emissions defeat software. They include:

  • 2014-2016 Jeep Grand Cherokees
  • 2014-2016 Dodge Ram 1500 Trucks

Fiat Chrysler Emissions Settlement

On Jan. 10, 2019, the Department of Justice, the EPA and the State of California announced a proposed settlement with Fiat Chrysler automobiles for alleged violations of the federal Clean Air Act and California law. A preliminary approval hearing was held January 23, 2019 before Judge Edward Chen in the United States District Court for the Northern District of California, and the Court granted final approval on May 3, 2019. The settlement does not resolve any potential criminal liability.

Under the settlement with the DOJ and the EPA, FCA will:

  • implement a recall program to repair more than 100,000 noncompliant diesel vehicles sold or leased in the U.S.
  • offer an extended warranty on repaired vehicles;
  • pay a civil penalty of $305 million to settle claims of cheating emission testing and failing to disclose unlawful defeat devices;
  • implement a program to mitigate excess pollution from these vehicles;

The recall and mitigation programs are estimated to cost FCA approximately $185 million.

In a settlement with the state of California, FCA will pay an additional $19 million to mitigate excess emissions from more than 13,000 noncompliant vehicles in California. Additionally, in a settlement with the U.S. Customs and Border Protection, FCA will pay a civil penalty of $6 million to resolve allegations of illegally importing 1,700 noncompliant vehicles.

Fiat Chrysler Emissions Fraud Background

The EPA announced on Jan. 12, 2017, that Fiat Chrysler had been issued a notice alleging violations of the Clean Air Act. The allegations and surrounding investigations came after the EPA and CARB vowed to expand investigations of emissions produced by vehicles from several leading auto manufacturers in the wake of the Volkswagen “Clean Diesel” emissions scandal.

In a statement announcing allegations against Fiat Chrysler, CARB Chair Mary D. Nichols said that, “Once again, a major automaker made the business decision to skirt the rules and got caught. CARB and U.S. EPA made a commitment to enhanced testing as the Volkswagen case developed, and this is a result of that collaboration.”

Fiat Chrysler announced in May 2017 that it would attempt to modify the affected vehicles to meet emissions standards, and that the company was in talks with the Department of Justice with hopes of settling the investigation. Shortly after the automaker issued its proposal, however, the U.S. Government filed a lawsuit accusing Fiat Chrysler of illegal use of emissions software.  

Several additional lawsuits filed by owners and lessees were consolidated in May 2018 in the Northern District of California. Fiat Chrysler has denied the allegations and stated that it will defend itself against any claims that use of the software amounted to a “deliberate scheme.”

In addition to VW and Fiat Chrysler, other auto manufacturers currently accused of emissions fraud include VW’s luxury brand Audi.

Related News (May 3, 2019) – Let the payments begin: Court Oks FCA Diesel Emissions Settlement
Reuters (May 24, 2017) — U.S. government sues Fiat Chrysler over excess emissions
CNN (March 22, 2017) — French investigation into emissions cheating widens to include Fiat Chrysler
USA Today (Jan. 13, 2017) — How Fiat Chrysler’s diesel woes differ from VW’s
The Detroit News (Jan. 12, 2017) — EPA accuses Fiat Chrysler of emissions cheating