FCA Could Be Forced To Pay Billions In Fines Over Emissions Cheating


Considering its current financial situation, things could be looking bleak for FCA if it's found guilty of emissions cheating.

Volkswagen isn't the only manufacturer in trouble over emissions cheating. Fiat Chrysler Automobiles is facing similar scrutiny after the Environmental Protection Agency accused the manufacturer of conducting similar emissions cheating practices. According to Reuters, the ongoing investigation has been stepped up a level, as FCA has revealed that it's been hit from subpoenas from state and federal authorities.

AJ Mueller

It all stems from the EPA accusing the automaker of failing to declare eight auxiliary emissions control devices installed on its 3.0-liter diesel V6, which apparently emits illegally high levels of emissions. 104,000 Dodge Ram 1500s and Jeep Grand Cherokees were reportedly affected, leading to numerous lawsuits from angry owners. FCA confirmed in its annual filing that it's "received various inquiries, subpoenas and requests for information from a number of governmental authorities, including the U.S. Department of Justice, the SEC and several states' attorneys general."

We are investigating these matters and we intend to cooperate with all valid governmental requests," it said. Of course, the scale of the alleged scandal is nowhere near as widespread as Volkswagen's infamous Dieselgate, but if found guilty of violating the Clean Air Act FCA would have to pay a substantial $4.6 billion fine. Considering the company's already bleak financial situation, this could be potentially devastating. Resolving this controversy "could have a material adverse effect on our financial position, results of operations or cash flows and may adversely affect our reputation with consumers, which may negatively impact demand for our vehicles," FCA wrote.

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