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Us regulators severely fined FCA,FCA willing to pay 800 million RMB in out-of-court settlement costs

2024-11-21 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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According to foreign media reports, FCA is willing to pay a total of $800m in out-of-court settlement over emissions fraud in FCA's RAM and JEEP diesel engines.

FCA announced on January 10th that it had reached a settlement with the US Justice Department, California and the owners involved in vehicles with fraudulent software.

FCA will update its emission control software and offer an extended warranty of up to 10 years or 120000 miles, as well as cash compensation, up to $3075 for eligible car owners. The owner or former owner of a used car will receive compensation of $990; the deadline for submitting applications by August 1, 2019 is February 3, 2021.

In early 2017, the EPA issued a subpoena to FCA immediately after discovering emission cheating devices in JEEP and RAM models. FCA's settlement includes $311 million in civil fines to U.S. and California regulators, up to $280 million in diesel claims, $105 million in extended warranties, $72.5 million in state civil fines, $33.5 million in excess emissions fees paid to California and consumer claims. Bosch, an automotive supplier of emission control software, paid $27.5 million to settle claims and another $103.5 million to settle claims in 47 states.

The heavy penalty on FCA is the latest move by US regulators after Volkswagen admitted to using emissions cheating software in September 2015.

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