U.S. Judge Orders New Talks to Resolve FCA Diesel Settlement

A federal court in San Francisco has ordered a new round of talks to resolve charges that Fiat Chrysler Automobiles NV used illegal emission control software in 104,000 diesels sold in the U.S.

Both sides have agreed on the technical and remedial aspects of the civil lawsuit, which was filed 18 months ago by the U.S. Dept. of Justice, which also is pursuing a separate criminal investigation.

But a source tells Reuters the parties are “hundreds of millions of dollar” apart on the size of the fine FCA must pay. Judge Edward Chen has appointed “settlement master” Ken Feinberg to begin talks with both parties on Dec. 3 to facilitate a settlement.

The case targets 2014-2015 model Jeep Grand Cherokee SUVs (pictured) and Ram 1500 pickup trucks equipped with the company’s 3.0-liter V-6 diesel.

The engines are equipped with unreported software that regulators say lowered emission levels for test purposes but relaxed them under real-world driving conditions. FCA has insisted it is innocent of any deliberate effort to cheat.

Reuters notes that FCA has set aside €713 million ($811 million) to cover fines and reparations related to the matter.