Fiat Chrysler to Settle U.S. Civil Suit on Diesel Emissions\, Source Says

Fiat Chrysler to Settle U.S. Civil Suit on Diesel Emissions, Source Says

(Bloomberg) -- Fiat Chrysler Automobiles NV will pay a civil penalty of less than $500 million to settle a lawsuit brought by the U.S. Justice Department, which alleged some of its diesel-powered vehicles violated U.S. clean-air rules, a person familiar with the matter said.

Fiat Chrysler won’t have to admit wrongdoing and will agree to pay owners of roughly 104,000 diesel-powered SUVs and pickups to update the emissions software on the vehicles via a recall, said the person who spoke on the condition of anonymity to discuss the agreement prior to the announcement.

The settlement is scheduled to be announced Thursday by the Justice Department in Washington.

The pact will resolve civil claims by the Justice Department and the U.S. Environmental Protection Agency that some Jeep Grand Cherokee and Ram 1500 models contain pollution-control software that improperly limits pollution during lab tests while allowing the vehicles to spew excess emissions on the road.

The settlement follows an investigation into the alleged violations first made public by the EPA and California Air Resources Board in January 2017.

The Justice Department filed a civil lawsuit against Fiat Chrysler in May 2017, accusing the company of using so-called defeat devices to mask true pollution levels of its vehicles in government tests.

The Justice Department also has pending a criminal investigation into the matter, other people familiar have said. The company has set aside $810 million to cover settlements and other costs stemming from the diesel case.

A Fiat Chrysler representative didn’t immediately respond to a request for comment.

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