Shortly after we reported that the EU intends on launching legal action against Italy for its handling of FCA’s alleged diesel emissions cheating, it has emerged that the U.S. Justice Department is preparing to sue the automaker directly.
Bloomberg reports that people close to the issue have revealed that a lawsuit could be filed as early as this week due to FCA’s alleged violations of U.S. clean-air rules. It is reported that negotiations are ongoing and that an agreement could be reached before legal action is taken as a last resort.
The lawsuit alleges that the automaker installed a number of it diesel models in the U.S. with illegal defeat devices designed to disable pollution controls to improve performance. FCA hasn’t denied the use of emissions-control devices but according to investigators, hasn’t fully explained the purpose of its devices.
Responding to news of a potential lawsuit, FCA said that it will defend itself against any allegations from the U.S. Justice Department.
“In the case of any litigation, FCA US will defend itself vigorously, particularly against any claims that the company deliberately installed defeat devices to cheat U.S. emissions tests.
“The company believes that any litigation would be counterproductive to ongoing discussions with the U.S. Environmental Protection Agency and the California Air Resources Board,” the company said.
In March, FCA told investors that it could face billions of dollars in fines if it is found to have violated any provisions of the Clean Air Act. The EPA says that approximately 104,000 Ram 1500 pickups and Jeep Grand Cherokees are fitted with defeat devices.
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