Fiat Chrysler agrees to pay $800 million to settle charges of emissions cheating

Fiat Chrysler Automobiles and Robert Bosch agreed Thursday to settle charges related to “defeat device” software intended to circumvent emissions standards for air pollutants. Bosch, a parts supplier, supplied and programmed the software used by Fiat Chrysler and Volkswagen in diesel vehicles.

The two agreements, to be filed later this month, will provide compensation for consumers who purchased or leased Fiat Chrysler vehicles containing illegal defeat devices and more than $172.5 million to 49 states, the District of Columbia, Guam, and Puerto Rico.

Fiat Chrysler and Bosch attempted to pull the wool over the eyes of American consumers, and pollute their way to the bank, said New York Attorney General Letitia James.

“Today’s settlements are a victory for everyday Americans who simply want to know that the car they are driving works as advertised, and will ensure no long-term environmental damage was done,” said James. 

Together with co-defendant Bosch, Fiat Chrysler will pay eligible owners who take their vehicle to an authorized dealer for the software repair average restitution of about $2,908. Lessees and former owners are eligible to receive restitution of $990.

In a separate settlement with the Department of Justice, Environmental Protection Agency, and the state of California also announced Thursday, Fiat Chrysler agreed to pay $305 million to settle claims of cheating emission tests and failing to disclose unlawful defeat devices. It also agreed to carry out a recall program to repair more than 100,000 diesel vehicles sold or leased in the United States, offer an extended warranty on repaired vehicles, and carry out a program to mitigate excess pollution from these vehicles.

"Fiat Chrysler deceived consumers and the federal government by installing defeat devices on these vehicles that undermined important clean air protections," said EPA Acting Administrator Andrew Wheeler.

In a separate settlement with California, Fiat Chrysler will pay an additional $19 million to mitigate excess emissions from more than 13,000 of the noncompliant vehicles in California. In addition, in a separate administrative agreement with the U.S. Customs and Border Protection, Fiat Chrysler will pay a $6 million penalty to resolve allegations of illegally importing 1,700 noncompliant vehicles.

The EPA-California settlement doesn’t resolve consumer claims or claims by individual owners or lessees who may have claims in the ongoing litigation. In addition to its separate settlement addressing excess emissions for affected vehicles in California, the state of California has entered into another settlement with Fiat Chrysler resolving alleged violations of California consumer protection laws relating to the affected vehicles.

A class-action lawsuit has secured a settlement for consumers from Fiat Chrysler and Bosch. Class members will receive between $990 and $3,075 – for a total of more than $300 million if all class members participate – plus an extended warranty and an emission fix also provided for in the EPA/California settlement. Under California's separate consumer settlement, Fiat Chrysler is required to also provide consumers with the relief.

For more information on the class action settlement, consumers can go to EcoDieselSettlement.com or call Fiat Chrysler at 833-280-4748.

Fiat Chrysler didn’t admit wrongdoing in the settlements, according to court documents.

Adam Garber, the consumer watchdog for U.S. PIRG, criticized the EPA-California settlement.

“While we are glad that Fiat Chrysler is paying something for damaging the health of Americans and deceiving customers, this settlement does not go far enough,” Garber said. “It neither ensures these violations of the public trust won’t happen again nor makes consumers whole.

“Instead of taking full responsibility, the company continues to argue it was doing a service for its customers,” he said.

The settlement is dimes on the dollar compared to the federal settlement with Volkswagen for essentially the same illegal action, Garber said.

“The settlement fails to invest in electric vehicles and other clean energy technology, which could repair the harm done to our health,” he said. “Equally troubling, customers were not given a buyback option, if they wished, for these deceptively marketed vehicles."