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USA government sues Fiat Chrysler for violating Clean Air Act


However, VW also confessed to its deceptive practices where Fiat Chrysler still denies having done anything wrong. In January, regulators said tests revealed that 2014-2016 Jeep Grand Cherokee SUVs and Ram 1500 pickup trucks with 3.0-liter diesel engines released higher levels of nitrogen oxides than allowed under federal standards.

The total cost to VW could rise into tens of billions after lawsuits by auto owners are settled.

Indeed, the US Environmental Protection Agency issued, on Thursday, a "notice of violation" which accused the automaker of failing to disclose the use of some software that the EPA says could be quite similar to the "defeat devices" Volkswagen AG was found to be using, devices that could cheat emissions tsesting on several million diesel cars.

"The company intends to defend itself vigorously, particularly against any claims that the company engaged in any deliberate scheme to install defeat devices to cheat US emissions tests", according to the statement. Vetr cut shares of Fiat Chrysler Automobiles NV from a hold rating to a sell rating and set a $10.31 price objective on the stock.in a research note on Tuesday, January 24th.

The U.S. government on Tuesday filed a lawsuit against Fiat Chrysler Automobiles (FCAU), accusing the vehicle manufacturer of using undisclosed software to skirt diesel emissions rules.




Reuters reported on May 17 that the Justice Department was preparing to file a civil lawsuit against the automaker. The EPA had indicated earlier that FCA faced potential fines amounting to $4.6 billion for all 104,000 Jeep and Ram models alleged to possess these devices. The Ram pickups comprise the vast majority of the vehicles counted in the suit, according to Fiat Chrysler. The Department of Justice sued Volkswagen over the "defeat devices". FCA US believes this will address the agencies' concerns regarding the emissions software calibrations in those vehicles.

In total, VW has agreed to spend up to $US25 billion in the United States to address claims from owners, environmental regulators, states and dealers and offered to buy back about 500,000 polluting U.S. vehicles. We've reached out to Fiat Chrysler to see if it can say more. The Justice Department has asked its suit be transferred to the same court.

FCA US said it "strongly hoped to be able to meet the EPA's enforcement division as soon as possible and representatives of the new administration, to show that FCA's (emissions) control strategies are justified and therefore do not constitute defeat devices according to the applicable rules, and to promptly resolve the question".

Automakers around the world are facing diesel scrutiny.

Earlier this month, Daimler dropped plans to seek USA approval to sell 2017 Mercedes-Benz diesel models.

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