WASHINGTON \u2014 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 it had issued a \u201cnotice of violation\u201d 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.
\u201cFailing to disclose software that affects emissions in a vehicle\u2019s engine is a serious violation of the law, which can result in harmful pollution in the air we breathe,\u201d 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. \u201cWe have done in our view nothing that is illegal,\u201d he said Thursday on a conference call. \u201cWe will defend our behavior in the right environment.\u201d
Marchionne said he was told by company lawyers that the Justice Department is investigating the company in concert with the EPA. He said the company stopped producing Grand Cherokees and Rams with diesel engines in September and will halt production until the case is resolved with the government.
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,\u201d Marchionne said.
If found liable, the company could face more than $4.5 billion in potential fines for violations of the Clean Air Act.
EPA said it will continue to investigate the \u201cnature and impact\u201d of the eight software functions identified through an intensive testing program launched after Volkswagen was caught in a 2015 cheating scandal involving its \u201cClean Diesel\u201d line of vehicles. Regulators were not yet defining the software found in the Fiat Chrysler vehicles as so-called \u201cdefeat devices\u201d intended to cheat on government emissions tests.
However, the agency said that numerous discussions with Fiat Chrysler over the last year had not produced any suitable explanation for why the company had failed to disclose the software, which regulators said caused the vehicles to emit less pollution during testing than during regular driving.
\u201cThis is a clear and serious violation of the Clean Air Act,\u201d Giles said. \u201cWhen companies break the law, Americans depend on EPA to step in and enforce.\u201d
On Thursday California regulators also announced it was citing Fiat Chrysler with 11 violations under that state\u2019s strict air quality standards.
Fiat Chrysler said in a statement that its emissions control systems \u201cmeet the applicable requirements\u201d and that it spent months giving information to the EPA to explain its emissions technology and proposed a number of actions including software changes to address the agency\u2019s concerns.
Regulators said owners of the affected models do not yet need to take any action and that they should continue driving their vehicles.
Fiat Chrysler shares tumbled 20 percent $9.12 Thursday morning as the EPA action was reported, wiping out about $3 billion of the company\u2019s market value. The shares recovered a bit to $9.79 by midday but still were down almost 12 percent.
The announcement comes one day after Fiat rival Volkswagen pleaded guilty in federal court to criminal charges related to widespread cheating involving emissions tests, agreeing to pay a record $4.3 billion penalty. Six high-ranking VW executives have been charged in the scandal, which prompted a nationwide recall of more than a half million affected cars and SUVs.
In the Volkswagen case, prosecutors alleged that top officials at the company approved of the cheating scheme, repeatedly lied to U. S. regulators and then orchestrated a mass attempted cover-up that included deleting computer files and emails.
EPA regulators made no such allegations against Fiat Chrysler on Thursday, though they said their investigation is in the early stages and is ongoing.
Marchionne, who clearly was agitated on a conference call with reporters, expressed confidence that the EPA will find no evidence of an illegal \u201cdefeat device\u201d in the Jeeps and Rams. He said some of the computer software on the engines was not disclosed because it\u2019s standard among automakers and disclosure wasn\u2019t previously required. But he said the EPA changed the rules after the Volkswagen case.
Marchionne said there is no comparison between his company and VW because there was no intent by Fiat Chrysler to deceive the EPA or cheat on emissions tests.
\u201cThere\u2019s not a guy in this house that would even remotely attempt to try something as stupid as that,\u201d he said. \u201cAnd if I found a guy like that I would have hung him on a door.\u201d
Were you interviewed for this story? If so, please fill out our accuracy form
Send questions\/comments to the editors.<\/p>\n

\n

\nSimilarity rank: 8.6\n<\/div>\n

Sentiment rank: -1.3<\/div>\n

\n<\/div>\n<\/div>\n