Fiat Chrysler was founded in 2014 as a result of the combination of Italian Fiat and American Chrysler, the world’s seventh largest car manufacturer. In the scandal in 2017, this giant company faced a penalty of $ 800 million. He experienced both great financial losses and prestige damage.
Compared to the allegations, Fiat Chrysler Automobiles used software to manipulate emission tests on the company’s diesel vehicles. This was an important environmental and legal problem…
It all started with EPA’s thesis.
In January 2017, the United States Environmental Protection Agency (EPA) and California Air Resources Board (CARB); Fiat Chrysler’in about 104,000 diesel vehicles sold in the United States (especially in Jeep Grand Cherokee and RAM 1500 pickup models) used software that manipulated emission tests.
These software allowed vehicles to run emission controls during the test with full capacity, but in real driving conditions, they disable these controls and caused a higher level of nitrogen oxide (NOX) emissions.
For those who do not know; This is a pollutant who has nox, breathing problems and surrounding pollution.
FCA rejected the arguments.
EPA suggested that FCA uses software called “Defeat Device” on vehicles. These software found that vehicles were during the emission test and provided full emission control in test conditions.
However, during the usual driving, these inspections were disabled and the vehicles released pollutants on the legal borders. FCA was accused of violating the US PAK Air Article for not explaining these software to the authorities.
However, FCA argued that it was not random manipulation and that the software was designed to increase the performance and durability of the vehicle, not to use emission tests.
The total number of vehicles allegedly affected by this situation was in the following form:
- Dodge RAM 1500 – 14,083 pieces
- Jeep Grand Cherokee – 14.652
- Dodge Ram 1500 – 31.948
- Jeep Grand Cherokee – 8.421
- Dodge Ram 1500 – 32.219
- Jeep Grand Cherokee – 2.469
In 2019, an agreement was reached.
In January 2019, FCA solved the case by agreeing with US officials. The agreement included:
FCA will pay about 800 million dollars in total. (This price includes a penalty of 305 million dollars paid to EPA and CARB, 280 million dollars paid to the affected vehicle owners and funds allocated for recalls with environmental conformity studies.)
The FCA has to recall the affected vehicles and to in accordance with emission standards and provide extended warranty for repaired vehicles.
FCA will use an independent control program for future emission arrangements.
Naturally, FCA’s prestige was damaged.
This issue, where FCA is on the agenda, broke the belief of consumers and investors to the company. Moreover, 800 million dollars of penalties and compensation created an important financial burden for the company.
The scandal also caused the popularity of diesel vehicles to fall in the USA.
On the other hand; In the automotive industry, emission tests came up again and the audits that could be applied to prevent such violations were strengthened.
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