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Fiat Chrysler to pay $800M in Jeep, Ram emissions cheating case

WASHINGTON — Fiat Chrysler Automobiles NV has agreed to a settlement worth about $800 million to resolve claims from the U.S. Justice Department and state of California that it used illegal software that produced false results on diesel-emissions tests, but still faces an ongoing criminal probe. The hefty penalty is the latest fallout from the U.S. government's stepped-up enforcement of vehicle emissions rules after Volkswagen AG admitted in September 2015 to intentionally evading emissions rules. The Fiat Chrysler settlement includes $311 million in total civil penalties to U.S. and California regulators, up to $280 million to resolve claims from diesel owners, and extended warranties worth $105 million. It covers 104,000 Fiat Chrysler 2014-16 Ram 1500 and Jeep Grand Cherokee diesels, the Justice Department said. Regulators said Fiat Chrysler used "defeat devices" to cheat emissions tests in real-world driving. Fiat Chrysler said in a statement that "the settlements do not change the Company's position that it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests." The company did not admit liability. "You wouldn't pay $311 million total dollars to the federal government in civil penalties if there were not a serious problem," U.S. assistant attorney general Jeff Clark told a news conference. The settlement also includes $72.5 million for state civil penalties, and $33.5 million in payments to California to offset excess emissions and consumer claims. German auto supplier Robert Bosch GmbH, which provided the emissions control software for the vehicles, also agreed to pay $27.5 million to resolve claims from diesel owners. Owners will receive an average of $2,800 to obtain software updates as part of the emissions recall, Fiat Chrysler said. Elizabeth Cabraser, a lawyer for the owners, said the "substantial cash compensation" will ensure that consumers get the recall fix. Bosch, which also provided diesel emissions software to Volkswagen, also agreed to pay $103.5 million to settle claims with 47 U.S. states that said the supplier "enabled" the cheating and should have known its customers would use the software improperly, the New York Attorney General's Office said.

Certain Chrysler owners eligible for buyback program

Certain car owners whose Chrysler vehicles contain dangerous defects will soon have a way to get rid of their lemons without losing money. As part of an agreement with federal regulators, Fiat Chrysler Automobiles has agreed to buy back more than 500,000 vehicles susceptible to veering out of control without warning at above market-value prices. The deal mainly covers certain models of RAM trucks, the Dodge Dakota pickup and Dodge Durango SUV. Further, owners of more than 1.5 million Jeep Liberty and Grand Cherokees at heightened risk for lethal fires are eligible to trade in their vehicles at above market value or, alternately, get a gift certificate if they prefer to have repairs made. Chrysler has "a heavy responsibility to make sure the products they make are safe for the traveling public," said Mark Rosekind, administrator of the National Highway Traffic Safety Administration. "... Here, we are sending an unambiguous signal to industry that if you skirt the laws or violate the law, or don't live up to the responsibility that consumers expect, we are going to penalize you." The buy-back and trade-in options for motorists come as part of an unprecedented penalty NHTSA slapped against Chrysler for violating federal motor-vehicle safety laws. Chrysler will pay a $105 million fine, the highest ever levied by the regulatory agency. In addition to the buy-backs, Chrysler also agreed to an independent monitor for three years. Investigators had outlined problems in the company's conduct in 23 recalls that affected more than 11 million defect vehicles. As part of a consent-order agreement, Chrysler acknowledged it did not notify vehicle owners of recalls in an effective manner and did not notify NHTSA of safety problems. Though those recalls affected millions of drivers, the buy-back and trade-in options are only for a small portion of the vehicles involved. Because Chrysler struggled to fix the problem and no repair was apparent, Rosekind said the buy-backs are reserved "for customers who didn't have a remedy." Buy-backs are for trucks and SUVs affected by three recalls that occurred in 2013 (recalls 13V-038, 13V-527 and 13V-529), that addressed a rear-axle pinion nut that could come loose and cause a loss of vehicle control. Those recalls covered 579,228 vehicles, including 2009-2012 Ram 1500, 2500, 3500, 4500 and 5500 trucks, 2009-2012 Dodge Dakotas, 2009 Chrysler Aspen and the 2009 Dodge Durango.

Is Ram bringing a trick tailgate to the Chicago Auto Show?

Last week featured running jokes and mirth on truck Twitter. It started when the GMC account played off the Super Bowl, posting a short video that started with the caption, "The Rams already lost." Then came a picture of a current Ram tailgate, followed by a short pictorial demonstration of the six-function MultiPro tailgate available on the GMC Sierra (pictured). Ram responded with a pigskin play of its own, calling GMC out for a false start and requesting everyone "Check back with us on 2/7/19." That is the first media day of the Chicago Auto Show. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The easy inference is that Ram has plans to reveal a clever tailgate of its own. The easy question is, will it be the split tailgate we first saw in a patent application in 2014, then in spy photos in 2017? That patent application detailed a gate split down the middle, with a traditional handle on the left-side door. The entire unit could open like a standard tailgate, or, each half could fold down like a tailgate as well as swing out like a door. The Honda Ridgeline has a similar option, but not being split, the Ridgeline's whole tailgate swings out like a door. Another novel feature of the Ram patent application was that the doors could be operated with a touchpad. When spy photographers caught a 2020 Ram prototype in Detroit with a split tailgate, the split was no longer 50/50, but about 65/35. After snapping the silver truck that day, the split tailgate was never seen again. Thursday in Chicago might be the day that changes, since it's fair to expect Ram to show something that will get the 1500 current with proliferating tailgate trickery. GMC and Ram weren't finished, though. The Ram 1500 won the Motor Trend Truck of the Year award at the Detroit Auto Show, and two hours after GMC's first tweet, GMC got around to sending this bit of congratulations: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.