Fiat Chrysler needs to pay $840 Million due to U.S. regulatory costs
On Monday, Fiat Chrysler Automobiles NV (FCA) reported that it would need to pay 722 Million Euros ($840 Million) to resolve the United States Department of Justice’s (DOJ) investigation regarding its vehicles’ excess diesel emissions.
The world’s eighth-largest automaker said that it would also need to pay for regulatory penalties due to the higher fuel economy.
In October 2019, Fiat Chrysler paid $79 Million due to failed 2017 fuel economy requirements and $77.3 Million for failed 2016 requirements.
According to analysts, the Italian-American company “may need to accrue additional amounts due to increased CAFE penalties and additional amounts owed under certain agreements for the purchase of regulatory emissions credits.”
FCA stated that it would continue to attend settlement talks with DOJ. However, it was not clear if the company would have an agreement with the organization.
In September 2020, FCA agreed to pay $9.5 Million to settle allegations that misled investors over its compliance with emissions regulations.