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Fiat Chrysler to pay $800M in Jeep, Ram emissions cheating case

WASHINGTON — Fiat Chrysler Automobiles NV has agreed to a settlement worth about $800 million to resolve claims from the U.S. Justice Department and state of California that it used illegal software that produced false results on diesel-emissions tests, but still faces an ongoing criminal probe. The hefty penalty is the latest fallout from the U.S. government's stepped-up enforcement of vehicle emissions rules after Volkswagen AG admitted in September 2015 to intentionally evading emissions rules. The Fiat Chrysler settlement includes $311 million in total civil penalties to U.S. and California regulators, up to $280 million to resolve claims from diesel owners, and extended warranties worth $105 million. It covers 104,000 Fiat Chrysler 2014-16 Ram 1500 and Jeep Grand Cherokee diesels, the Justice Department said. Regulators said Fiat Chrysler used "defeat devices" to cheat emissions tests in real-world driving. Fiat Chrysler said in a statement that "the settlements do not change the Company's position that it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests." The company did not admit liability. "You wouldn't pay $311 million total dollars to the federal government in civil penalties if there were not a serious problem," U.S. assistant attorney general Jeff Clark told a news conference. The settlement also includes $72.5 million for state civil penalties, and $33.5 million in payments to California to offset excess emissions and consumer claims. German auto supplier Robert Bosch GmbH, which provided the emissions control software for the vehicles, also agreed to pay $27.5 million to resolve claims from diesel owners. Owners will receive an average of $2,800 to obtain software updates as part of the emissions recall, Fiat Chrysler said. Elizabeth Cabraser, a lawyer for the owners, said the "substantial cash compensation" will ensure that consumers get the recall fix. Bosch, which also provided diesel emissions software to Volkswagen, also agreed to pay $103.5 million to settle claims with 47 U.S. states that said the supplier "enabled" the cheating and should have known its customers would use the software improperly, the New York Attorney General's Office said.

Supplier says Jeep Cherokee hack only affects FCA cars

Harman doesn't think that drivers need to worry about any further hacks of its products. The company supplies FCA's Uconnect infotainment system where a software vulnerability is responsible for a 1.4-million vehicle recall. "This experimental hack is unique to Chrysler," Harman CEO Dinesh Paliwal said to Automotive News. "This does not exist, to our assessment, in any other vehicle." The reason that the company wouldn't be involved is that automakers aren't simply plugging in the existing infotainment systems into new vehicles. According to Paliwal, Harman supplies the unit, but FCA and other automakers are able to make additional modifications for their vehicles. The National Highway Traffic Safety Administration has also recently taken up the question of broader software vulnerabilities in Harman's products. On July 29, the agency began investigating the company to check for similarities between Uconnect and the infotainment systems supplied to other automakers. The Jeep hack became national news when two researchers were remotely able to take control of a Cherokee. The vulnerability in the cellular connection even gave control over the brakes. "Once people get in the car and get into the CAN bus, then you can start to mimic and mess up many, many things in the car," Paliwal said to Automotive News. Politicians immediately responded with legislation to create federal standards in hopes of protecting drivers better. NHTSA also opened an investigation to make sure the automaker's software update actually solved the problem. Related Video:

Chrysler readying 20 Moparized vehicles for SEMA

The Las Vegas Convention Center has plenty of space for aftermarket companies and automakers to show off their wares, and it looks like Chrysler is taking advantage of the spacious floor plan. At next month's SEMA Show, Chrysler will have a full 20 cars from its six brands decked out with Mopar gear.
As a hint of what is to come, Chrysler released a handful of teaser sketches showing glimpses of modified Jeep Cherokee, Ram 1500, Fiat 500L and Chrysler 300 concept vehicles. The automaker will also use the venue to show off a new line of Jeep Performance Parts offered by the all-new Mopar Off-Road Division. In addition to the images, Chrysler also issued a brief press release - posted below - breaking down some of the "industry-first features" that Mopar has offered in recent years.