Justice Department Prepping for Lawsuit Against Fiat Chrysler
The U.S. Justice Department is preparing itself for a lawsuit against Fiat Chrysler Automobiles over, you guessed it, diesel-burning engines. Cetane-rated fuel has been a broad target for governments lately, but the forthcoming FCA suit is less concerned with what you’re burning than with how you’re burning it.
Officials are concerned the automaker may have used a defeat device after the Environmental Protection Agency accused it of using software that allowed about 104,000 diesel vehicles to emit excess emissions. The models in question are 2014-2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3.0-liter diesel engines.
Despite studies suggesting other manufacturers being involved in emissions cheating is a statistical likelihood, FCA has maintained it is not another Volkswagen.
“In the case of any litigation, FCA US will defend itself vigorously, particularly against any claims that the company deliberately installed defeat devices to cheat U.S. emissions tests,” Fiat Chrysler said in a statement. “The company believes that any litigation would be counterproductive to ongoing discussions with the U.S. Environmental Protection Agency and the California Air Resources Board.”
Fiat Chrysler has entered negotiations with the regulators and has admitted it was subpoenaed by federal and state authorities, including the Securities and Exchange Commission, for access to data. If it can reach an agreement soon, the civil suit will be avoided. But it will have to be very soon. According to Reuters, regulatory sources are geared up to ditch diplomacy and commit to legal action any day now.
The United States has been preparing a potential complaint ahead of an initial hearing for separate lawsuits. A federal judge for the U.S. District Court for the Northern District of California has set a May 24th hearing date for a series of lawsuits filed by owners of affected vehicles. It’s believed the Justice Department will move forward with its actions if no agreement is reached with FCA by that date. The EPA has stated the maximum possible fine that could be levied against FCA is $4.6 billion — $44,539 per vehicle.
The automaker has said it may have erred by not disclosing software contained in the vehicles, but insists the devices are not malicious or related to any emissions trickery. However, regulators have stated that nondisclosure is already a violation of the Clean Air Act. Fiat Chrysler has been trying to obtain EPA certification for 2017 model year diesel Jeep Grand Cherokee and Ram 1500, but the regulator has held off in light of the ongoing investigation.
Meanwhile, the European Commission told Italy it took “insufficient action” in ensuring FCA-built diesels adhered to present-day emission requirements. The German transport ministry also accused FCA of installing defeat devices on the Fiat 500X before abandoning the mediation process, leaving the end point of the European diesel flap as one big question mark.
[Image: Fiat Chrysler Automobiles]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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I doubt the EPA will levy the max fine. First, FCA is showing intent to fix it's mistake. Second, they did not cover it up. Basically the opposite of VWAG. Also, if they do indeed find a fix, it should be easier to implement since they do have DEF fluid tanks unlike the early model VW and audis. Also, the number of diesels sold by FCA in comparing to just VW alone is massive. Looking back through the articles, it appears that FCA intended these "emission cheats" to operate mainly in warm up and cold weather situations. Likely to improve engine reliability and longevity. While I'm not certified to judge if they are right or wrong on this, I will stand by my belief that FCA did not intend any harm/deception to the extent and duration that VWAG did. I also doubt their will be as large an impact on sales and brand perception.
I am intrigued to see if anything will ever come out of the inline 6 Cummings emissions. I know for a while now that they have had a legal battle regarding their emissions especially on previous models. I believe it was back in the 2000's that the Detroit 3 all got their hands slapped with emissions from their HD truck engines.