The accord in lawsuits over false readings on diesel vehicles could cost nearly $800 million, including penalties, fixes, warranties and compensation.
Fiat Chrysler Automobiles will pay hundreds of millions of dollars in penalties and remedial efforts under an agreement announced Thursday to settle lawsuits over false emissions readings on diesel vehicles.
Including extended warranties and other provisions, the settlement could cost the company close to $800 million.
The Justice Department sued the company in 2017 over the Environmental Protection Agency’s finding that it had used illegal engine-control software that turned off pollution controls under certain driving conditions. The E. P. A. contended that the software enabled the vehicles to pass emissions tests while allowing them to release higher levels of pollutants in normal driving.
Under the settlement, the company will pay $305 million in civil penalties in connection with those claims, the Justice Department said, and another $6 million over allegations of illegally importing noncompliant vehicles.
It will also pay $19 million to mitigate excess emissions from noncompliant vehicles in California, which also sued the company.
As part of the agreement, Fiat Chrysler will recall about 100,000 diesel-powered Ram 1500 trucks and Jeep Grand Cherokee sport utility vehicles from the 2014,2015 and 2016 model years, a person briefed on the settlement said. The recall repair involves installing new software in the vehicles and providing extended warranties, at a total cost of up to $185 million, the Justice Department said.
In addition, vehicle owners will be eligible for compensation of $990 to $3,075 from Fiat Chrysler and Bosch, a German company that supplied engine computers and software.
