What's the news?
The Environmental Protection Agency (EPA) in the United States has accused Fiat Chrysler Automobiles (FCA) of illegally using hidden software in order to hide the true extent of diesel emissions. The EPA believes such software is present in approximately 104,000 Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3.0-litre diesel engines, sold since 2014 in the US market. Currently, this does not include any vehicles in Europe.
FCA's ever charismatic CEO, Sergio Marchionne, responded by saying: "The way that it has been described, I think, has been unfair to FCA, and that is the thing that disturbs me most." He added that he believed the regulators had a "belligerent' view towards car makers.
Marchionne expressed regret that the allegations came out, saying the company could have settled the issue in "a more efficient way" without the EPA announcement. It has given the impression that FCA has cheated in the same way that Volkswagen had.
Share prices in FCA fell sharply upon the announcement. It is believed that should FCA be found guilty, the company could be fined as much as $4.6 billion.
Anything else?
In an official statement issued in response to the EPA's allegation, FCA stated: "FCA US looks forward to the opportunity to meet with the EPA's enforcement division and representatives of the new administration to demonstrate that FCA US's emissions control strategies are properly justified and thus are not "defeat devices" under applicable regulations and to resolve this matter expeditiously."