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FCA, US Justice Dept. Talking Diesel Emissions Settlement

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April 11, 2018—Fiat Chrysler Automobiles NV is in advanced settlement talks with the U.S. Justice Department and California Resources Board, regarding accusations that the company illegally used software that led to excess emissions in over 100,000 U.S. diesel vehicles sold since 2014.

The Reuters news service reports that an advisor, Ken Feinberg, disclosed at a federal court hearing on Tuesday that government lawyers and Fiat Chrysler had exchanged and “redlined” documents after lengthy talks that were moving swiftly.

A lawyer for Fiat Chrysler said the company and government lawyers were exchanging drafts of settlement documents, and felt a settlement would likely be reached during the upcoming summer months.

Lawyers in court didn’t disclose the potential amount of any fine that state and federal governments would want Fiat Chrysler to pay as part of any settlement. The sides have engaged in settlement talks at length and have three more rounds of talks planned by the end of May.

Fiat Chrysler and the Justice Department have talked about consumer-related provisions that could be part of a settlement, including warranty and recall provisions.

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