Automotive - - Jan 13,2017
Fiat Chrysler has been accused of hiding information from authorities regarding the software which regulates emissions in its diesel vehicles.
The Environmental Protection Agency (EPA) in the United States announced that the automobile company breached the law by installing the emissions software in more than 100,000 Jeeps and Dodge vehicles.
According to the agency, this technology generated higher nitrogen oxide levels.
Fiat Chrysler boss Sergio Marchionne said, there wasn’t any motive to develop conditions that were constructed “to defeat the testing process". He further added, the company isn’t engaged in any illegal act.
Soon after the news was announced, shares in Fiat Chrysler reached 10.3% lower in New York and closed 16% lower in Milan.
The EPA has called this incident as a ‘serious violation’. As per the agency, the 104,000 vehicles involved in this scandal were 2014, 2015 and 2016 model years of the Dodge Ram truck and Jeep Grand Cherokee SUV.
During a press conference, the EPA revealed that a minimum of eight types of emissions control software on the vehicles wasn't disclosed to the agency. The agency also said, some of the software caused the vehicles to perform ‘differently’ during emissions tests.
On the other hand, Fiat Chrysler did not hesitate in replying and said it would prove that the emissions control strategies were valid and were not "defeat devices" aimed to get around emissions tests.
The EPA stated Fiat Chrysler could be accountable for fines of about $44,500 per vehicle, which adds to a sum total of about $4.6bn (£3.8bn).
On Wednesday, German automobile maker Volkswagen was pleaded guilty to three criminal charges over its emissions-rigging scandal. The firm will pay $2.8bn in criminal fines and an amount of $1.5bn in civil penalties.