EPA v. Fiat Chrysler

Case summary

This case involves the installation by Fiat Chrysler Automobiles N.V., FCA US, and affiliates (FCA) of software and devices designed to defeat the emissions controls in approximately 100,000 Ram 1500 and Jeep Grand Cherokee light-duty diesel vehicles (Model Years 2014-2016). The software and defeat devices cause the vehicles? emission control systems to perform differently, and less effectively, during certain normal driving conditions than on federal emission tests, resulting in increased emissions of harmful air pollutants. The State of California is a co-plaintiff to this settlement. United States alleged that FCA violated the CAA with regard to approximately 100,000 diesel vehicles sold in the U.S. Specifically, the U.S. complaint alleged that each of these vehicles contain, as part of the engine control module, at least eight software-based features that were not disclosed in FCA?s COC applications to EPA and that affect the vehicles? emission control systems. The undisclosed software lessens the effectiveness of the vehicles? emission control systems during certain normal driving situations. This results in vehicles that meet emission standards in the laboratory and during standard EPA testing, but during certain normal on-road driving these vehicles emit NOx that is much higher than the EPA-compliant level. The Approved Emissions Modification (AEM) is an FCA-developed software repair that is ready for installation in the vehicles pending final court approval. FCA updated vehicle software and calibrations to meet emission standards and tested Ram and Jeep Grand Cherokee vehicles to prove to EPA and California that the vehicles with the installed AEM meet emission standards. As injunctive relief, FCA must update the vehicle software with the AEM to remove the defeat devices and modify the undisclosed software-based features that affect emissions in the vehicles, disclose all software features in the AEM that affect emissions in the vehicles, and implement corporate governance and organization reforms to minimize the likelihood of future environmental compliance violations. FCA must install the AEM in at least 85% of the U.S. vehicle fleet (?National Recall Target?) within two years of final court approval. Vehicle owners and lessees will directly receive information from FCA concerning the AEM installation and monetary inducements for installation of the AEM on consumer vehicles. More information for vehicle owners and lessees is available at EcoDieselSettlement.com or by calling FCA at 1-833-280-4748. NOx pollution contributes to the formation of harmful smog and soot, exposure to which is linked to a number of respiratory- and cardiovascular-related health effects as well as premature death. Children, older adults, people who are active outdoors (including outdoor workers), and people with heart or lung disease are particularly at risk for health effects related to smog or soot exposure. Nitrogen dioxide formed by NOx emissions can aggravate respiratory diseases, particularly asthma, and may also contribute to asthma development in children. Fiat Chrysler has also agreed pay a civil penalty of $305 million to settle claims of cheating emission tests and failing to disclose unlawful defeat devices. The recall and federal mitigation programs are estimated to cost up to $185 million. In a separate settlement with California, Fiat Chrysler will pay an additional $19 million to mitigate excess emissions from more than 13,000 of the noncompliant vehicles in California. In addition, in a separate administrative agreement with the United States Customs and Border Protection, Fiat Chrysler will pay a $6 million civil penalty to resolve allegations of illegally importing 1,700 noncompliant vehicles. For more information about this settlement, see https://www.epa.gov/enforcement/fiat-chrysler-automobiles-clean-air-act-civil-settlement-information-sheet.

Defendants (4)

• FCA USA LLCNamed in complaintNamed in settlement
• Fiat Chrysler Automobiles N.V.Named in complaintNamed in settlement
• V.M. MOTORI S.P.A.Named in complaintNamed in settlement
• V.M. NORTH AMERICA, INC.Named in complaintNamed in settlement

Facilities (1)

• CHRYSLER GROUP LLC

  1000 CHRYSLER DRIVE, AUBURN HILLS, MI, 483262766

  Registry ID: 110054900461

Statutes cited

• CAA 203 — Prohibited Acts - Motor Vehicle & Motor Vehicle Engines

Enforcement conclusions (1)

• Fiat Chryslerentered 2019-05-03

  Primary law: CAA

  Federal penalty: $262,300,000 · State/local: $42,700,000

Timeline (5 milestones)

• 2016-08-22Referred To Dept Of Justice
• 2016-10-05Enforcement Action Data Entered
• 2017-05-23Complaint Filed With Court
• 2019-01-10Final Order Lodged
• 2019-05-03Final Order Entered