Fiat Chrysler Automobiles (FCA) may need to cough up as much as $840 million to resolve a Justice Department investigation into excess diesel emissions.
In August, a U.S. appeals court ruling overturned the Trump administration’s July 2019 rule that suspended a NHTSA regulation more than doubling penalties for those automakers that fail to meet fuel efficiency requirements. FCA says this ruling will have a significant financial impact on it.
Back in January 2019, FCA agreed to an $800 million settlement to resolve claims from the Justice Department, California Air Resources Board and owners after using illegal software that cheated emissions tests for diesel vehicles. The car manufacturer has also had to pay penalties for failing to meet fuel economy requirements in recent years, including $79 million for missing 2017 targets and $77.3 million for missing 2016 requirements.
Read Also: FCA And PSA Take Another Step Towards Securing Regulatory Approvals For Merger
FCA says that if the higher penalty rate is applied retroactively, it “may need to accrue additional amounts due to increased CAFE penalties and additional amounts owed under certain agreements for the purchase of regulatory emissions credits.”
According to Reuters, FCA also recognized a €222 million ($258 million) provision “to settle matters under investigation by the U.S. Department of Justice primarily related to criminal investigations associated with U.S. diesel emissions matters.”
FCA is still engaging in talks with the Justice Department, but hasn’t stated if it is close to reaching an agreement.
