FCA Will Pay $700M to Settle Diesel Dispute
Fiat Chrysler Automobiles has agreed to pay at least $311 million in penalties and $280 million to settle lawsuits brought by the U.S. Department of Justice, the State of California, and Jeep and Ram buyers over 104,000 diesel engines regulators say illegally emitted excess emissions.

Regulators say the diesel engines in more 100,000 Jeep Grand Cherokee and Ram 1500 units sold in the U.S. in the 2014–’16 model-years used illegal software to cheat emissions standards.
Photo courtesy FCA US LLC
WASHINGTON — Fiat Chrysler Automobiles and a German auto supplier have agreed to settle claims and lawsuits concerning 3.0-liter V-6 diesel engines installed in 104,000 Jeep Grand Cherokee EcoBoost and Ram 1500 EcoBoost models sold in the U.S. in the 2014–’16 model-years.
The U.S. Department of Justice and California regulators claimed software containing illegal auxiliary controls allowed the engines to emit “substantially” greater than permitted levels of nitrogen oxide. FCA’s total liability could surpass $700 million dollars, including but not limited to:
$311 million in civil penalties to U.S. and California regulators.
$280 million to settle a lawsuit by owners, averaging out to about $2,800 each.
$105 million to fund ongoing state-level investigations and in compensation for excess emissions already released.
Another $103.5 million will be paid by German engine component supplier Robert Bosch GmbH will pay $103.5 million to regulators in 47 U.S. states and another $27.5 to settle its part of the owners’ lawsuit, according to the report.
FCA and Bosch have denied any wrongdoing. The factory updated its software and had its U.S.-sold diesel powerplants recertified in 2017.
FCA and other factories selling diesels in the United States have been under intense scrutiny since the Volkswagen emissions scandal erupted in 2015. VW has paid fines totaling more than $25 billion to U.S. regulators, car buyers, and dealers to settle claims involving at least 500,000 vehicles. In January 2018, Mercedes-Benz officially withdrew its diesels from the U.S., leaving roughly a dozen diesel-powered cars and trucks on the market heading into the 2019-MY.
This story has been updated with confirmed dollar amounts.
More Compliance

Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
AAMS Training and Mosaic Compliance Services Merge
The strategic combination is intended to expand technology-driven compliance solutions for the automotive industry.
Read More →
The Jurisprudence of Pricing
Legal concept helps makes sense of California’s recently passed version of the failed federal CARS legislation.
Read More →
Trump 2.0 and Enforcement Priorities
The upshot is don’t relax, because regulation indeed continues.
Read More →
June Is Automotive Service Professionals Month
Observance is opportunity to thank technicians for their crucial role in auto retail.
Read More →
Cox Automotive Releases Compliance Guide
New edition walks auto dealers through relevant regulations for 2025.
Read More →
Trump 2.0 and Retail Automotive
Administration’s plans should generally bode well for the industry.
Read More →
CARS Rule Update: 5th Circuit Oral Arguments Recap
In this video, Jim Ganther of Mosaic Compliance Services, recaps the key takeaways from the oral arguments in the critical CARS Rule case, including potential outcomes and what dealers should do to stay ahead of compliance changes.
Read More →
State of the CARS Rule, Part 3
The players in the automotive industry should coordinate their responses to this pending regulation.
Read More →
The Future of Car Dealer Documents
Where forms, documents, agreements and contracts could be in 50 years.
Read More →