EPA files suit against Fiat Chrysler for emissions issues

May 29th, 2017 by Dakota Software Staff Industry News

The Environmental Protection Agency has been in a state of flux in recent months, as vastly different priorities and approaches between the Obama and Trump administrations meant significant reorganization. However, the federal environmental compliance regulator isn't making a wholesale change from its established position. A recent lawsuit filed against automaker Fiat Chrysler by the U.S. Department of Justice, related to emissions testing irregularities and associated concerns, indicates the EPA and other agencies are still treating many of its longstanding responsibilities as important priorities.

The Fiat Chrysler lawsuit

The news of a lawsuit against major car company Fiat Chrysler first came in late May, when the DOJ filed a civil suit alleging the business used workarounds to defeat testing related to emissions levels for a variety of diesel passenger vehicles. Reuters said the specifics of the case involve the illegal use of software to deceive emissions controls in approximately 104,000 vehicles sold since 2014.

In some relatively simple but significant ways, the suit is similar to the one brought against Volkswagen for the use of hidden tools to circumvent emissions testing tools in diesel vehicles. The devices allowed for additional controls when testing occurred, providing results to regulators that were in line with requirements. However, those controls weren't active during regular, everyday use by the car owners.

That earlier case ended with Volkswagen taking responsibility for the malfeasance and paying out a multi-billion dollar settlement. Reuters said the number of vehicles affected in the Volkswagen scandal was significantly larger, which could have an impact on the future course of the case.

The Washington Examiner noted the complaint filed used wording that indicates the EPA believes the actions taken by Fiat Chrysler were most likely done so on purpose, as opposed to by genuine mistake. A statement by the EPA, shared by the Examiner, states the EPA's position in plain language.

"The complaint alleges that the undisclosed software functions cause the vehicles' emission control systems to perform differently, and less effectively, during certain normal driving conditions than on federal emission tests, resulting in increased emissions of harmful air pollutants," the statement read.

Moving forward

The lawsuit isn't the first indication of potential regulatory problems for Fiat Chrysler. The Detroit Free Press noted the issue has been brewing for some time, with discussions and negotiations ongoing between the EPA and the automaker, as well as other federal agencies and the California Air Resources Board, a state agency. Senior leadership at Fiat Chrysler had previously expressed hope that the issue could be resolved on a short timetable, presumably without a civil court case involved.

The Free Press shared a statement from the car company, which emphasizes its stance about innocence related to any organized or purposeful attempt to work around emissions limits.

"FCA U.S. is currently reviewing the complaint, but is disappointed that the [Department of Justice Environment and Natural Resources Division] has chosen to file this lawsuit," the statement read. "The Company intends to defend itself vigorously, particularly against any claims that the Company engaged in any deliberate scheme to install defeat devices to cheat U.S. emissions tests."

Fiat Chrysler took a minor but notable hit on the stock market once the news broke, with share prices dropping about 4 percent. The automaker also applied for 2017 emissions certifications for some of its new vehicle models the week prior to the suit's announcement. With the final results of the lawsuit to far off to clearly determine, the business could face some major challenges in the months and years ahead.