The parent company of Dodge and Jeep has pleaded to criminal conspiracy charges stemming from its efforts to hide the amount of pollution created by its diesel engines.
Stellantis Will Pay $300 Million To Settle Allegations of Diesel Emissions Fraud
To settle a probe into alleged cheating on emissions testing for some of its diesel-powered vehicles, the international automaker Stellantis has pleaded guilty and agreed to pay $300 million in fines.
According to the Justice Department, Fiat Chrysler Automobiles (FCA), which merged with Peugeot parent company PSA to form Stellantis in 2021, placed illegal software meant to evade regulatory emissions testing.
Reuters also mentioned that the authorities said the total value of FCA US property subject to forfeiture is $203.6 million. As part of the deal, FCA US is expected to pay a $96 million criminal penalty.
Meanwhile, as per the report of Engadget, Stellantis has agreed to submit Clean Air Act compliance reports to the Justice Department as part of a three-year probation period, in addition to paying a fine. Three Stellantis employees are now facing criminal charges in connection with the case.
The impending guilty plea is believed to be the last significant action taken by US officials against FCA in the emissions fraud case.
Why Was FCA Fined?
More than 100,000 diesel-powered Jeep Grand Cherokee SUVs and Ram 1500 pickup trucks from the 2014 to 2016 model years are involved, according to a CNN report.
The Justice Department said FCA US pleaded guilty to one count of conspiracy to defraud the U.S., commit wire fraud, and violation of the Clean Air Act. FCA US stated in the plea agreement that it used software in its six-cylinder diesel engines to pass strict emissions tests even though the engines would not have met the emissions criteria in real-world operation. According to documents filed by the Justice Department, the company also attempted to conceal this fact from regulators and consumers.
Stellantis claimed in a statement that all consumer complaints about the alleged cheating have been resolved, and no further recalls are needed to fix the problems.
This Is Not the First Fine That Stellantis Paid
Separately, Reuters held that in January 2019, FCA agreed to a $800 million settlement with the Justice Department and the state of California in the diesel emissions investigation. The automaker made no admissions of guilt or wrongdoing as part of the deal. FCA agreed to pay $2,800 to each of the car owners as part of the arrangement.
Volkswagen Pleaded Guilty to Cheating Emissions Tests
Engadget and Reuters, on the other hand, noted that the plea bargain comes five years after Volkswagen AG pled guilty to criminal charges in a scandal known as "Dieselgate" to address its own emissions crisis impacting roughly 600,000 vehicles.
Volkswagen's deception prompted increased scrutiny, with regulators on both sides of the Atlantic cracking down on automakers accused of cheating government emissions testing with illegal software known as defeat devices.
