Fiat Chrysler Automobiles finds itself in hot water, this time with the EPA. During a conference call this morning, the agency accused FCA of violating diesel emission standards on 104,000 Jeep Grand Cherokee and Ram 1500 models equipped with the 3.0L EcoDiesel from 2014 to 2016. They are also accused of failing to disclose eight different software programs. The EPA alleges the software used on these models allowed them to produce excess pollution. At the moment, the EPA isn't calling the software a defeat device as FCA haven't explained the purpose of this software.
“Failing to disclose software that affects emissions in a vehicle’s engine is a serious violation of the law, which can result in harmful pollution in the air we breathe. We continue to investigate the nature and impact of these devices,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance in a statement.
In lab tests done by the EPA, the 3.0L EcoDiesel meet emission standards. But at high speeds or driving for extended periods, the effectiveness of the emission's system was reduced by the software.
This possibly explains why the 2017 Grand Cherokee and Ram 1500 EcoDiesel haven't been given the ok by the EPA as we reported last year.
The EPA says there is no immediate action for owners to take as the vehicles are safe and legal to drive while the investigation continues. FCA could be fined as much $44,539 per vehicle if they are found to be violating the Clean Air Act (about $4.6 billion).
In a statement obtained by Bloomberg, FCA said it “intends to work with the incoming administration to present its case and resolve this matter fairly and equitably and to assure the EPA and FCA US customers that the company's diesel-powered vehicles meet all applicable regulatory requirements."
FCA's stock price dropped 16 percent to $9.30 after the news broke. Soon after, trading on the stock was halted.
We'll be watching this and update this story as more information comes in.
Source: Reuters, Bloomberg , USA Today , EPA, FCA
Press Releases are on Page 2
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