Fiat Chrysler Can Look Forward to a Big Summer Eco Payout

Steph Willems
by Steph Willems

When Fiat Chrysler Automobiles regails the class with a “how I spend my summer” story this fall, expect some mention of handing over large sums of money to state and federal governments.

The U.S. Department of Justice and California Air Resources Board want the automaker to make things right after accusing it of polluting the nation’s air via its 3.0-liter EcoDiesel V6 engines. Some 104,000 Jeep and Ram vehicles from the 2014 to 2016 model years contained emissions control devices not revealed to the Environmental Protection Agency, which came down hard on the automaker after their discovery. According to FCA’s lawyer, the settlement could come this summer.

What does the DOJ want? According to an earlier settlement offer sent to the automaker, the levelling of “very substantial civil penalties” is the only way to ensure FCA learns its lesson.

At a federal court hearing in San Francisco on Tuesday, FCA lawyer Robert Giuffra said settlement documents were being exchanged between lawyers of both parties. Expect a settlement between FCA and the DOJ “probably sometime during the summer,” he told Reuters.

Talks between the two parties are reportedly progressing at a “swift pace.” That’s the way court-appointed advisor Ken Feinberg describes it, anyway.

So far, neither the DOJ or CARB have mentioned just how much penalty cash FCA might be on the hook for. While the vehicles in question await a fix designed to bring the engines into compliance, any civil payout would have to be accompanied by environmental mitigation efforts — no unlike those seen in the Volkswagen diesel settlement. Just fixing the older vehicles and ensuring new ones remain clean will not be enough. (The EPA gave 2017 Ram and Jeep EcoDiesels the green light back in July.)

FCA never admitted to any wrongdoing in the EcoDiesel saga.

[Image: Fiat Chrysler Automobiles]

Steph Willems
Steph Willems

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  • Lichtronamo Watch as the non-us based automakers shift more production to Mexico in the future.
  • 28-Cars-Later " Electrek recently dug around in Tesla’s online parts catalog and found that the windshield costs a whopping $1,900 to replace.To be fair, that’s around what a Mercedes S-Class or Rivian windshield costs, but the Tesla’s glass is unique because of its shape. It’s also worth noting that most insurance plans have glass replacement options that can make the repair a low- or zero-cost issue. "Now I understand why my insurance is so high despite no claims for years and about 7,500 annual miles between three cars.
  • AMcA My theory is that that when the Big 3 gave away the store to the UAW in the last contract, there was a side deal in which the UAW promised to go after the non-organized transplant plants. Even the UAW understands that if the wage differential gets too high it's gonna kill the golden goose.
  • MKizzy Why else does range matter? Because in the EV advocate's dream scenario of a post-ICE future, the average multi-car household will find itself with more EVs in their garages and driveways than places to plug them in or the capacity to charge then all at once without significant electrical upgrades. Unless each vehicle has enough range to allow for multiple days without plugging in, fighting over charging access in multi-EV households will be right up there with finances for causes of domestic strife.
  • 28-Cars-Later WSJ blurb in Think or Swim:Workers at Volkswagen's Tennessee factory voted to join the United Auto Workers, marking a historic win for the 89- year-old union that is seeking to expand where it has struggled before, with foreign-owned factories in the South.The vote is a breakthrough for the UAW, whose membership has shrunk by about three-quarters since the 1970s, to less than 400,000 workers last year.UAW leaders have hitched their growth ambitions to organizing nonunion auto factories, many of which are in southern states where the Detroit-based labor group has failed several times and antiunion sentiment abounds."People are ready for change," said Kelcey Smith, 48, who has worked in the VW plant's paint shop for about a year, after leaving his job at an Amazon.com warehouse in town. "We look forward to making history and bringing change throughout the entire South."   ...Start the clock on a Chattanooga shutdown.
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