Fiat Chrysler Accused of Cheating Diesel Standards with Grand Cherokee
News Could Fuel More Concerns Over Whether Fiat Chrysler Will Sell Off American Nameplates
FCA US was just dealt a big blow today with news that the Environmental Protection Agency (EPA) has accused the automaker of cheating on diesel emissions standards much like Volkswagen was accused of last year. The allegations specifically cover the 2014, 2015 and 2016 model-year Grand Cherokees equipped with 3.0-liter diesel engines. Light-duty Ram 1500 trucks also use the diesel engines.
According to USA Today, the claims affect a total of 104,000 vehicles. The EPA’s accusations contend that FCA US installed software in the trucks and SUVs in order to evade diesel emissions standards.
More specifically, the Environmental Protection Agency alleges that the automaker installed eight different undisclosed software programs on the named vehicles that collectively caused them to emit “harmful nitrous oxide emissions,” which can negatively affect breathing conditions.
“This is a clear and serious violation of the Clean Air Act,” an assistant administrator for the EPA’s Office of Enforcement and Compliance Assurance told reporters. “There is no doubt they are contributing to illegal pollution.”
Fiat Chrysler issued a response to the allegations. The company says it is, “Disappointed that the EPA has chosen to issue a notice of violation with respect to the emissions control technology employed in the company’s 2014-16 model-year light-duty 3.0-liter diesel engines.”
“FCA US intends to work with the incoming administration to present its case and resolve this matter fairly and equitably, and to assure the EPA and FCA US customers that the company’s diesel-powered vehicles meet all applicable regulatory requirements.”
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It’s important to note the current EPA claims against FCA fall under President Obama’s administration.
No time is actually a good time for news like this, especially when you consider the impact it’s bound to have on the manufacturer, as proven with the VW emissions scandal. But it certainly couldn’t come at a worse time for FCA, considering we’re only days before the Detroit auto show opens to the general public.
According to reports, Fiat Chrysler’s shares on the New York Stock Exchange dropped 14.2 percent at 11:41 a.m. (EST), following the EPA’s statement.
The bigger consideration, however, is the impact this latest news could have on lingering rumors that Fiat has been considering selling its American nameplates.
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