Stelantis unit pleads guilty, will pay $300 million in US diesel investigation

The guilty plea represents the last significant action that US officials are expected to take against FCA in the emissions fraud case.

The US business of Fiat Chrysler Automobiles pleaded guilty Friday to criminal conspiracy and will pay nearly $300 million in a plea agreement to resolve a multi-year US Justice Department diesel emissions fraud investigation, court documents show.

FCA US LLC, now part of Stelantis, is paying nearly $300 million in criminal penalties arising from its efforts to evade emissions requirements for more than 100,000 older Ram pickup trucks and Jeep sport-utility vehicles in its US lineup. Will do

“FCA US is engaged in a multi-year plan to mislead U.S. regulators and customers,” said Assistant Attorney General Kenneth Polite, adding that the department would be “accountable companies that deliver candor, good corporate governance and timely treatment.” want to keep profits above that.”

US District Judge Nancy Edmonds in Detroit set July 18 as the sentencing date. The settlement includes a fine of $203.6 million and a fine of $96.1 million. The government noted that FCA US had previously paid civil penalties of $311 million and more than $183 million in compensation to more than 63,000 people as part of the class-action diesel lawsuit.

FCA US will be on probation for three years. Automakers must conduct a preliminary review of compliance with the Clean Air Act and inspection and testing procedures, submit a report, and produce at least two follow-up reviews and reports. Reuters first reported the agreement last week.

The Justice Department said that FCA US installed deceptive software features intended to evade regulatory scrutiny and fraudulently help diesel vehicles meet required emissions standards. The department said the company “deliberately calibrated the emissions control system” to produce fewer emissions during federal test procedures under normal driving conditions.

The guilty plea represents the last significant action that US officials are expected to take against FCA in the emissions fraud case.

Stelantis confirmed the agreement on Friday and said in its 2021 financial disclosures that it had earned about 266 million euros ($301 million) before the matter at the time.

The affected diesel-powered vehicle model years spanned from 2014 to 2016. FCA merged with French Peugeot manufacturer PSA in 2021 to form Stellantis.

Three FCA US employees have been indicted for conspiracy to defraud the United States and violate the Clean Air Act and are awaiting trial.

The plea deal comes five years after Volkswagen AG pleaded guilty to criminal charges for solving its own emissions crisis, in a scandal that affected nearly 600,000 vehicles known as “dieselgate”. .

(Reporting by David Shepardson; Editing by Aurora Ellis)

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