FIAT CAUGHT WITH HAND IN THE COOKIE JAR
Fiat in Trouble
The U.S. Justice Department plans to file a civil lawsuit against Fiat Chrysler Automobiles over excess diesel emissions as early as this week if no agreement is reached with the Italian-American automakers, two sources briefed on the matter said on Wednesday. The U.S. Environmental Protection Agency in January accused FCA of illegally using undisclosed software to allow excess diesel emissions in about 104,000 cars and SUVs, the result of a probe that stemmed from regulators’ investigation of rival Volkswagen AG.
This can’t be a surprise except for the fact that they got caught. This has been in issue in foreign car makers for years and the only ones that have problems are the ones that got caught. No one can believe this is the first and only time that Fiat has tried this
The European Commission has already taken its first legal step against the Italian government, demanding a response to concerns of the diesel emissions. The commission said it had formally demanded more information from the Italian authorities on how they enforced rules demanding that manufacturers justify the use of so-called auxiliary engine control devices, which can be used to circumvent emission standards.
The commission also asked Italy to clarify why it had not imposed corrective measures on Fiat or slapped penalties on the manufacturer. Italy has two months to respond to the commission’s request, which triggers a legal process that could end with Italy being taken to European Union courts and fined. The move comes after months of talks intended to clarify the steps Italian authorities had taken.
The EPA has said the maximum possible fine against FCA could be $4.6 billion. In February, FCA said it had received requests for information and subpoenas from U.S. federal and state authorities, including the Securities and Exchange Commission, for diesel issues. In total, VW has agreed to spend up to $25 billion to address U.S. claims from owners, environmental regulators, states, and dealers and offered to buyback polluting U.S. vehicles.
Keep those stops tight
Todd “Bubba” Horwitz