U.S. Says FCA Diesels Used Unreported Software That Hikes Emissions

The Environmental Protection Agency says Fiat Chrysler Automobiles NV sold 104,000 diesel-powered pickup trucks and SUVs in the U.S. with previously undisclosed software that allows excessive emissions.

EPA’s notice of violation covers 2014-2016 Jeep Grand Cherokee SUV and Dodge Ram 1500 fullsize pickups equipped with 3.0-liter V-6 diesels. FCA could face civil penalties of much as $37,500 per affected vehicle, or $3.9 billion, for the violation.

Carmakers may use special systems that ease emission controls under narrowly defined conditions to protect a diesel from damage. But they are required to disclose such devices to regulators.

EPA and the California Air Resources Board say FCA failed to report such a system, thereby violating federal clean air laws. The agencies are now investigating whether the software constitutes a broader “defeat device” akin to the one Volkswagen AG used to cheat emission tests.

FCA says it has already submitted “voluminous” data to regulators about its emission control technology and has proposed software updates to address EPA’s concerns. CEO Sergio Marchionne, declaring, “We have done nothing that is illegal,” dismisses the notice of violation as “nonsense.”