Fiat confirms U.S. settlements on civil, environmental and consumer claims
Fiat Chrysler Automobiles announced that its wholly owned subsidiary FCA US LLC has reached final settlements on civil, environmental and consumer claims with the U.S. Environmental Protection Agency, U.S. Department of Justice, the California Air Resources Board, the State of California, 49 other States and U.S. Customs and Border Protection, agreeing to pay approximately $400M in civil penalties to resolve differences over diesel emissions requirements. FCA US has also settled a putative class action on behalf of private consumers. Customer compensation, the estimated future cost of the extended warranty and the cost of environmental mitigation efforts also account for approximately $400M. The resulting $800M total is in line with the financial charge taken by the company for this purpose in Q3, it said. Fiat added, "The settlements do not change the Company's position that it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests. Further, the consent decree and settlement agreements contain no finding or admission with regard to any alleged violations of vehicle emissions rules." In addition, FCA US will pay $19M to the State of California for emissions mitigation initiatives, while also financing the upgrade of 200,000 high-efficiency catalytic converters through the aftermarket.