January 12, 2017 — The Environmental Protection Agency (EPA) today accused Fiat Chrysler of violating the Clean Air Act by using software to hide excess diesel emissions in 104,000 vehicles.
Following the news, FCA stocks dropped more than 16% forcing the halt share trading for the automaker.
The EPA claims FCA installed and failed to disclose “engine management software in light-duty model year 2014, 2015 and 2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3.0 liter diesel engines sold in the United States.” The software resulted in the increase of nitrogen oxide emissions.”
The California Air Resources Board (CARB) also issued a notice of violation to FCA and has started an investigation along with the EPA into the engines.
FCA issued a strong response denying the allegations and says it intends to work with the incoming administration to present its case and resolve this matter fairly and equitably.” (FCA’s full statement is at the bottom of the article.) The EPA’s announcement caught FCA executives by surprised according to insiders inside the company who claimed they were notified only three hours before the EPA issued its press release.
The news comes the day after the U.S. Justice Department indicted six Volkswagen executives for their role in the German automaker’s diesel scandal. Volkswagen also agreed to $4.3 billion in criminal and civil fine.
January 12, 2017 , Auburn Hills, Mich. – FCA US is disappointed that the EPA has chosen to issue a notice of violation with respect to the emissions control technology employed in the company’s 2014-16 model year light duty 3.0-liter diesel engines.
FCA US 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 US diesel engines are equipped with state-of-the-art emission control systems hardware, including selective catalytic reduction (SCR). Every auto manufacturer must employ various strategies to control tailpipe emissions in order to balance EPA’s regulatory requirements for low nitrogen oxide (NOx) emissions and requirements for engine durability and performance, safety and fuel efficiency. FCA US believes that its emission control systems meet the applicable requirements.
FCA US has spent months providing voluminous information in response to requests from EPA and other governmental authorities and has sought to explain its emissions control technology to EPA representatives. FCA US has proposed a number of actions to address EPA’s concerns, including developing extensive software changes to our emissions control strategies that could be implemented in these vehicles immediately to further improve emissions performance.
FCA US looks forward to the opportunity to meet with the EPA’s enforcement division and representatives of the new administration to demonstrate that FCA US’s emissions control strategies are properly justified and thus are not “defeat devices” under applicable regulations and to resolve this matter expeditiously.