The US division of car giant Stellantis NV has pleaded guilty and been fined US$300 million (NZ$476m) for cheating on government emissions testing for diesel versions of Jeep SUVs and Ram pick-up trucks.
Federal prosecutors accused company officials of conspiring to deceive consumers about the fuel efficiency of more than 100,000 diesel Jeep Grand Cherokee SUVs and Ram 1500 models built from 2014 to 2016, when the nameplates were part of Fiat Chrysler Automobiles (FCA).
FCA last year merged with the French PSA Group – Peugeot and Citroen – to create the giant Stellantis group. The general counsel and corporate secretary for FCA North America, Christopher Pardi, told US Federal Court Judge Nancy Edmonds: “The company accepts responsibility and regrets the conduct that resulted in this plea agreement.”
The court hearing was first reported early in June by The Detroit News. The settlement includes a nearly US$204 million forfeiture from the models sold on which it had cheated on the tests and an additional penalty of more than US$96 million.
The company also is subject to three years of probation and is required to cooperate in the US government’s further investigation into the matter.
Prosecutors said the carmaker didn’t disclose at least eight auxiliary emission control devices on its Jeeps and Rams. Use of the cheating devices meant the Jeeps and trucks released more nitrogen oxides during customer use than during government testing.
In the outdoor air, they can create ozone, and elevated levels of nitrogen dioxide can damage the human respiratory tract, according to disease control specialists.
It’s the second guilty plea for criminal conduct by the US arm of FCA for actions taken before the merger with PSA. Earlier this year Stellantis paid $US678 million (NZ$1.07 billion) in penalties following an adjustment to Corporate Average Fuel Economy (CAFE) regulations (how far cars and light trucks must travel on a US gallon of fuel) in the US.
FCA wasn’t alone in emissions testing cheating. Its settlement comes five years after Volkswagen pleaded guilty to criminal charges to resolve emissions cheating allegations affecting nearly 600,000 vehicles.
The scandal known as “Dieselgate” resulted in VW paying a US$2.8 billion criminal fine, though total penalties, civil damages and restitution have neared US$35 billion, the carmaker said in 2020.