U.S.-listed Fiat Chrysler facebook/" target="_blank">shares fell 4.1 percent to close at $10.32 in heavy trading on Tuesday. VW admitted to intentionally cheating while Fiat Chrysler denies wrongdoing. The U.S. government filed a civil lawsuit on Tuesday accusing Fiat Chrysler Automobiles NV of illegally using software to bypass emission controls in 104,000 diesel vehicles sold since 2014. U.S. Judge Edward Chen in San Francisco set a Wednesday hearing on a series of lawsuits filed by owners of vehicles and some dealers against Fiat Chrysler. The Justice Department has asked its suit be transferred to the same court.
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Fiat Chrysler Stumbles Into U.S. Regulatory Crosshairs Again
Fiat Chrysler Automobiles NV keeps running into trouble with the same government that arranged its shotgun marriage. Still, Fiat Chrysler has gained 46 percent since President Donald Trump's election victory, driven in part by bets it will benefit most from Trump's pledges to weaken environmental regulations. Earlier in 2015, Fiat Chrysler agreed to a then- record $105 million civil penalty after a NHTSA probe found the company mishandled 23 recalls. The issue could cost Fiat Chrysler between $460 million and more than $1 billion, according to estimates from Barclays Plc, Mediobanca SpA and Evercore ISI. While Marchionne has said Fiat Chrysler never set out to cheat emissions tests, the fallout could be significant for the carmaker, which lacks the global scale and financial resources of its German rival.
Why The U.S. Government Is Suing Fiat Chrysler Over Cheating Diesels
But according to the lawsuit, Fiat Chrysler failed to mention eight Auxiliary Emissions Control Devices that change the way two crucial emissions control features work—Selective Catalytic Reduction and Exhaust gas recirculation. The Justice Department's lawsuit claims that Bosch was also involved with Fiat Chrysler's 3.0-liter diesel development, saying Fiat Chrysler obtained its engine control modules from the German supplier. We've reached out to Bosch, and they've responded with this statement:Bosch takes the allegations of manipulation of the diesel software very seriously. FCA US believes this will address the agencies' concerns regarding the emissions software calibrations in those vehicles. Photo: FCAThe U.S. Department of Justice recently filed a civil lawsuit against Fiat Chrysler for allegedly violating the Clean Air Act by installing undisclosed "defeat devices" on 3.0-liter diesel vehicles.
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