Tag: DOJ

By on July 7, 2020

Volkswagen Group appears to have completed the terms laid out by the U.S. Department of Justice after it decided the automaker required some oversight in the wake of the 2015 emissions fiasco (colloquially known as Dieselgate). VW was found guilty of equipping certain models with emissions-cheating software that would allow the car to run cleaner under testing conditions (passing regulations) and dirtier, with better performance, the rest of the time.

The con was brilliant and allowed VW to fool regulators for years until it all blew up in its face. Getting caught in the United States kicked off a chain reaction that cost the automaker a fortune globally. In May, VW estimated it had spent €31.3 billion ($34.40 billion USD) in fines and settlements and fines globally — adding that it expects to bleed another €4.1 billion through 2021. But the company was certainly happy to announce on Monday that it had adhered to settlement deal it reached with the Department of Justice and California’s Attorney General.  (Read More…)

By on November 8, 2019

The Justice Department has issued civil subpoenas to the four major automakers’ that voluntary agreed to adopt a Californian compromise on vehicle emission requirements. The antitrust investigation seeks to determine whether or not BMW, Ford, Honda, and Volkswagen were in violation of federal competition laws by agreeing with each other to adhere to stricter emissions standards penned by California.

With the Trump administration working for years to roll back emissions standards, California has been doing everything in its power to maintain its ability to self-regulate and gain support for higher emission standards. Under the agreement with the Golden State, the companies promised to meet annual emission improvement targets of 3.7 percent and defer to the state’s authority to set its own emissions standards. (Read More…)

By on September 25, 2019

2015 Ram 1500 Laramie Crew Cab 4x4 EcoDiesel, Image: FCA

A senior manager who led the team of diesel engineers behind Fiat Chrysler’s maligned EcoDiesel V6 has been indicted by a grand jury on charges of conspiracy to mislead U.S. regulators and the public.

Following an investigation by the Department of Justice, Emanuele Palma, FCA’s senior manager of diesel driveability and emissions, faces multiple charges of conspiracy to defraud the U.S., wire fraud, and violation of the Clean Air Act. He’s also accused of lying to the FBI and Environmental Protection Agency investigators.

All of this stems from the EPA-led outcry over auxiliary emissions control devices found on the company’s previous-generation 3.0-liter diesel truck engine. (Read More…)

By on July 23, 2019

Ford badge emblem logo

As if preordained to coincide with Ford’s announcement of its electric F-Series prototype, news of a class-action lawsuit accusing the automaker of falsified fuel economy tests surfaced last night. The suit, filed on Monday in the U.S. District Court for the Eastern District of Michigan by Seattle law firm Hagens Berman, asks $1.2 billion in damages for customers it claims are overspending on fuel.

The legal action piggybacks on the Justice Department’s criminal investigation of Ford’s testing procedures for the 2019 Ford Ranger in April. However, the civil suit also ropes in the F-Series — claiming that customers could spend upwards of two grand in gas they never budgeted for.  (Read More…)

By on April 26, 2019

That headline was unavoidable, by the way. On the same day Ford Motor Company released a better than expected first-quarter earnings report, it also revealed the Justice Department has opened a criminal investigation into its emissions certification process — a probe that could see fuel economy ratings rolled back.

Wall Street seemed much more interested in the financial news, however, giving the company’s stock a much-needed lift. In the Glass House, Jim Hackett must be smiling. (Read More…)

By on November 21, 2018

Prosecutors may be looking into a vehicle recall affecting certain Hyundai and Kia vehicles equipped with the company’s turbocharged 2.0-liter and naturally-aspirated 2.4 liter engines. It’s not an investigation to determine if a recall is needed; rather, it’s a look-see to find out if existing recalls were conducted correctly.

It remains to be seen in these early stages if any charges will be filed. If action is taken, however, the fines levied would likely cut deeply into the company’s balance sheet.

(Read More…)

By on October 27, 2018

Given that Tesla CEO Elon Musk’s Twitter account now has third-party oversight, it’s unlikely we’ll see angry missives about the Fun-Busting Interrogators this weekend. However, that won’t stop the FBI from probing Musk’s past production promises for the Model 3 sedan.

As part of an ongoing Department of Justice investigation that kicked off after Musk’s fateful August 7th “funding secured” tweet, the FBI wants to know if the automaker misled investors via production promises that didn’t pan out. (Read More…)

By on September 18, 2018

Elon Musk

What a week it’s shaping up to be for Tesla CEO Elon Musk. Interestingly, if this latest report proves true, we can pin the blame for all of Musk’s misfortune over the past 24 hours on the presence of social media, and his tendency to overuse it.

According to Bloomberg, the U.S. Justice Department has opened a fraud investigation into Musk’s infamous “funding secured” tweet — the online message that kicked off a strange journey that ultimately went nowhere. (Read More…)

By on April 11, 2018

2015 Ram 1500 EcoDiesel HFE, Image: FCA

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. (Read More…)

By on February 5, 2018

2016 Ram 1500 Laramie Crew Cab 4x4 EcoDiesel

Fiat Chrysler Automobiles might need the 2019 Ram 1500’s newly increased payload capability when it comes time to visit the bank.

As we’ve told you since the scandal broke a year ago, FCA could find itself on the hook for hefty penalties after the Environmental Protection Agency slammed it for failing to declare a bevy of auxiliary emission control devices on its 3.0-liter diesel V6 engine. With the 2017 and 2018 Ram and Jeep EcoDiesel models now in compliance, the question becomes: what does FCA pay to settle the fallout?

According to documents obtained by Bloomberg, it seems the monetary fine sought by the U.S. Justice Department might not fit in the pickup bed. (Read More…)

By on June 15, 2017

2016 Ram 1500 EcoDiesel HFE, Image: FCA

Ram and Jeep fans looking to get into a new 1500 or Grand Cherokee with the highest possible fuel economy picked the wrong year to embark on their search. While owners of 2014-2016 Ram and Grand Cherokee EcoDiesel models wonder whether their vehicles are polluting as the EPA claims, Fiat Chrysler Automobiles’ 2017 EcoDiesels languish in legal limbo.

At first, the Environmental Protection Agency held up the certification of 2017 models as it slogged through a backlog of extra-stringent testing prompted by Volkswagen’s diesel emissions scandal. Then, in January, FCA’s hopes of getting 2017 EcoDiesels to dealers hit a brick wall. The automaker was accused of violating environmental regulations after the EPA discovered unannounced emissions control devices on the models — raising concerns of a possible VW-type defeat device scheme.

Then came a lawsuit filed by the U.S. Department of Justice. So, when can diesel fans get their hands on a light-duty FCA oil burner? It could be a while. (Read More…)

By on May 23, 2017

2015 Ram 1500 EcoDiesel HFE, Image: FCA

The U.S. Department of Justice has filed a civil lawsuit against Fiat Chrysler Automobiles, alleging the automaker violated the Clean Air Act.

At the root of the lawsuit is roughly 104,000 Ram 1500 and Jeep Grand Cherokee vehicles equipped with the 3.0-liter diesel V6, sold between 2014 and 2016. Earlier this year, the Environmental Protection Agency accused FCA of failing to disclose eight auxiliary emissions control devices during the certification process. The vehicle’s software allows for higher-than-permitted emissions at certain times.

Despite FCA’s protests — as well as attempts to head off a potential multi-billion-dollar fine — the parallels between this case and Volkswagen’s emissions saga are growing by the day. (Read More…)

By on January 28, 2017

2015-chevrolet-suburban-ltz-photo-576439-s-1280x782

An unnamed State Department employee and the manager of a northern Virginia repair shop appropriated and sold government vehicles for profit, the U.S. Department of Justice revealed Thursday.

The kickback scheme, detailed in a release from the U.S. Attorney’s Office, saw over a dozen State Department motor pool SUVs and a truckload of tires and wheels sold through a collision repair shop in Springfield, Virginia. The shop, Car Collision Center, is the go-to repair facility for various government departments.

It also has a license to sell vehicles. (Read More…)

By on January 11, 2017

Volkswagen TDI

The United States has now laid charges against six former or current Volkswagen officials for their role in the diesel emissions scandal.

A federal grand jury in the Eastern District of Michigan returned an indictment today, fingering the execs for playing key roles in a decade-long conspiracy to deceive the U.S. government and public. While five of the men live in Germany, one man — Oliver Schmidt, former head of VW’s regulatory compliance department — was nabbed by the FBI in a Miami airport on Saturday while attempting to return to Germany.

As the charges were handed down, the embattled automaker pleaded guilty to three criminal federal counts and agreed to pay $4.3 billion in criminal and civil penalties. (Read More…)

By on March 13, 2016

Data, Image: rh2ox/Flickr

A former employee, who was fired after news of Volkswagen’s diesel emissions scandal broke, is claiming in a lawsuit that he was let go from the automaker after noticing data related to the scandal was being deleted, several German language outlets are reporting (via Automotive News).

The lawsuit, filed by a former employee of Volkswagen Group of America, is the first possible evidence made public so far of a good, old fashioned cover up on this side of the Atlantic.

(Read More…)

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