Mike Spector, David Shepardson

NEW YORK/WASHINGTON – A U.S. company, Fiat Chrysler Automobiles, has agreed to plead guilty and pay approximately $300 million in fines to end a multiyear-old emissions fraud investigation surrounding diesel-powered vehicles. This was according to people who were familiar with the matter.

FCA US LLC is now part of Stellantis NV and has agreed to plead guilty. This was based on its efforts to evade emissions regulations for over 100,000 Jeep sport-util vehicles and Ram pickup trucks. 

While the plea agreement, which was reached with U.S. Justice Department representatives, will be announced as soon as next Wednesday, there is a possibility that it could fall. The company would plead guilty during the next hearing at a U.S. federal court.

These diesel-powered cars are from model years 2014 through 2016. Stellantis was formed in 2021 when FCA joined French Peugeot (OTC) maker PSA.

Stellantis, and the Justice Department refused to comment.

This plea agreement comes five years after Volkswagen AG, (OTC) pleaded guilty in criminal court to address its emissions crisis. It affected nearly 600,000. The scandal became “Dieselgate.”

Volkswagen (ETR.) deceit led to additional scrutiny. This resulted in both the Atlantic and European governments cracking down against automakers that used illegal software, known as defeat devices, to fake government emissions testing.

European automakers relied heavily on clean diesel technology for vehicles that were compliant with environmental regulations. Officials later discovered that the cars polluted even more than they did during tests to be certified for sale. Automobile manufacturers are now focused on electric vehicle batteries.

The current investigation was the subject of negotiations between FCA lawyers, U.S. officials, and lasted for many years.

One of FCA’s employees is preparing to face trial on charges he misled regulators about pollution from the vehicles targeted in the investigation. Two additional FCA employees were also charged by the Justice Department in connection to the emissions fraud.

The indictment states that the employees conspired in installing defeat devices on vehicles to fool government emission testing and pollute roads beyond legal limits.

FCA was previously able to resolve civil disputes, but denied that it had deliberately tried cheating emissions tests.