FCA pleads guilty in emissions fraud case, to pay $300M total in settlement

Detroit — The U.S. division of Stellantis NV on Friday pleaded guilty for cheating on government emissions testing on Jeep and Ram vehicles and will pay a total of nearly $300 million in penalties and forfeitures.

It’s the second guilty plea for criminal conduct for FCA US LLC in as many years for actions taken prior to parent Fiat Chrysler Automobiles NV’s merger with French automaker Groupe PSA that created Stellantis last year.

The settlement includes a nearly $204 million forfeiture from the models sold on which it had cheated on the tests and an additional penalty of more than $96 million. The company also is subject to three years of probation and is required to cooperate in the government’s further investigation into the matter.

Stellantis previously accrued approximately $301 million to cover the settlement, the company said in a statement.

FCA on Thursday was charged with one count of conspiracy to defraud the United States in violation of the Clean Air Act and to commit wire fraud. The statute maximum penalty is $500,000 or two times the gross gain or loss from the offense, Assistant U.S. Attorney John Neal said during a plea hearing.

The accusations stemmed from a pending 2019 case against diesel senior manager Emanuele Palma and two Italian nationals who work for FCA Italy SpA, the Italian subsidiary of Stellantis. Prosecutors accused the officials of conspiring to cheat federal emissions tests and deceiving consumers about the fuel efficiency of more than 100,000 diesel Jeep Grand Cherokee SUVs and Ram 1500 pickup trucks spanning model years 2014 to 2016.