Fiat Chrysler is facing a massive $840 million payout to settle penalties related to diesel emissions violations as well as fuel economy penalties. The company revealed the issue in a filing with the Securities and Exchange Commission.
Part of the potential fine is the result of an August appellate court ruling that reversed the Trump administration’s move to suspend a National Highway Traffic Safety Administration rule doubling penalties for automakers failing to meet fuel efficiency requirements.
FCA noted in the filing, according to Reuters, the amount of the penalties “accrued could be up to 500 million euros ($581 million) depending on, among other things, our ability to implement future product actions or other actions to modify the utilization of credits.”
The company is no stranger to these types of fines. In October 2019, FCA said it incurred a $79 million U.S. civil penalty for failing to meet 2017 fuel economy requirements after paying $77.3 million for 2016 requirements, Reuters reported.
The automaker is uncertain about what NHTSA is going to do and its next set of actions will be based upon what the agency does next.
Additionally, Fiat Chrysler also made note of a $258 million provision “to settle matters under investigation by the U.S. Department of Justice primarily related to criminal investigations associated with U.S. diesel emissions matters.”
The company has already agreed to an $800 million in a settlement with the DOJ, California Air Resources Board and vehicle owners. The fee is to resolution that it used illegal software to beat diesel-emissions tests in the U.S. The company already paid a $9 million fine for misleading investors about the issue, Reuters reported.
Fiat Chrysler isn’t the only automaker that has paid out big fines related to cheating diesel emissions testing. Daimler AG has paid out fines in Europe and the U.S. to resolve issues, but no company has paid more than Volkswagen. Overall, the German automaker has written checks exceeding $32 billion to make amends for its diesel cheating efforts.
In the U.S., the fines have been used in a variety of ways including infrastructure projects for alternative energy sources, buying back vehicles with the diesel engines that beat the testing using the cheat device and compensating owners, and even charging stations.