The US Justice Department (DOJ) on Thursday announced a $305 million civil settlement between Fiat Chrysler and the Environmental Protection Agency (EPA) in a lawsuit over illegal software found on certain diesel Dodge Ram models and diesel Jeep Grand Cherokee models.
On top of all this, Fiat Chrysler is expected to upgrade the software on all of the offending vehicles and pay into a mitigation fund designed to ameliorate damage done by excess nitrogen oxide (NOx) emissions. The two programs together will cost the company an additional $185 million.
The DOJ said Fiat Chrysler will also have to pay a $6 million civil penalty to US Customs and Border Protection to “resolve allegations of illegally importing 1,700 noncompliant vehicles.”
The settlement comes two years after the EPA accused Fiat Chrysler of installing undisclosed and illegal software on 104,000 vehicles, including 3.0L diesel Dodge Ram 1500 trucks and diesel Jeep Grand Cherokees between model years 2014 and 2016. The EPA claimed the software would sense when the vehicle was being tested under laboratory conditions and implement the full emissions control system so that the car could pass the EPA’s emissions tests. But when the vehicle was being driven under real-world conditions, the software would reduce the effectiveness of the emissions control system so the car would perform better.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC to Approve Exxon’s $64 Billion Deal with Pioneer Resources, Excludes
May 1, 2024 by
CPI
UK Competition Watchdog Raises Alarm Over Nvidia’s ARM Takeover
May 1, 2024 by
CPI
Sen. Klobuchar Urges Regulators to Probe Collusion in Health Care Pricing
May 1, 2024 by
CPI
Multiple States Join Tennessee’s Antitrust Lawsuit Against NCAA Over NIL Rules
May 1, 2024 by
CPI
NY AG Joins Suit Challenging NCAA’s Restrictions on Student Athlete NIL Rights
May 1, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI