Gov’t accuses Fiat Chrysler of cheating on emissions

Associated Press

WASHINGTON

The U.S. government accused Fiat Chrysler on Thursday of failing to disclose software in some of its pickups and SUVs with diesel engines that allows them to emit more pollution than allowed under the Clean Air Act.

The Environmental Protection Agency issued a “notice of violation” to the company that covers about 104,000 vehicles including the 2014 through 2016 Jeep Grand Cherokee and Ram pickups, all with 3-liter diesel engines. The California Air Resources Board took similar action.

“Failing to disclose software that affects emissions in a vehicle’s engine is a serious violation of the law, which can result in harmful pollution in the air we breathe,” said Cynthia Giles, EPA assistant administrator for enforcement and compliance.

Fiat Chrysler CEO Sergio Marchionne denied any wrongdoing, saying the EPA was blowing the issue out of proportion. “We have done in our view nothing that is illegal,” he said Thursday on a conference call. “We will defend our behavior in the right environment.”

Marchionne said he was told by company lawyers that the Justice Department is investigating the company in concert with the EPA, raising the likelihood of an ongoing criminal probe. He said the company halted production of Grand Cherokees and Rams with diesel engines in September, but will continue to sell models manufactured before then that are still on dealers’ lots.

The company said it intends to present its case to the incoming Trump administration. “We will work with the new leadership to get this issue through,” Marchionne said.

A spokesman for President-elect Trump did not immediately respond to a request for comment. The White House said Thursday that EPA makes enforcement decisions independently and that outgoing President Barack Obama wasn’t involved in the decision to cite the company.

If found liable, Fiat Chrysler could face more than $4.5 billion in potential fines for violations of the Clean Air Act.