Fiat Chrysler Automobiles is contesting a violation issued last week by the U.S. Environmental Protection Agency (EPA) which alleges that the automaker manufactured Ram trucks and Jeep SUVs with undisclosed software that produce increased emissions.
The EPA contends that FCA installed and failed to disclose engine management software that has increased nitrogen oxides (NOx) in 2014-2016 Dodge Ram 1500 pickups and Jeep Grand Cherokees equipped with a 3.0-liter EcoDiesel engine.
The California Air Resources Board, or CARB, has also issued a similar violation to FCA. CARB and EPA are working together to investigate alleged violations of the Clean Air Act.
FCA denies any wrongdoing and has taken exception to comparisons drawn between it and Volkswagen which the EPA cited for diesel emissions violations. Shares of FCA stock in the U.S. dropped 12 percent following the news of alleged emissions violations.
“The immediate reaction both in the press and in terms of the markets has been to try and draw a parallel between these events and the recently settled or at least apparently settled issue with VW,” FCA CEO Sergio Marchionne said during a press conference today. “There’s nothing in common between the VW reality and what we are describing here.”
Marchionne explained that FCA performed calibration exercises on the Ram 1500 and Grand Cherokee—both equipped with the popular 3.0-liter EcoDiesel—to ensure that the vehicles met emissions requirements. He said the dispute centers around whether the calibration exercises filed by FCA have met all the regulations set by EPA and CARB.
“We have been in dialogue with the EPA for more than a year. We have done a lot of disclosure of documentation regarding calibrations and all of the correspondence associated with the calibration exercises between ourselves and our partners. And we have been as forthcoming as we can possible be in terms of disclosure,” Marchionne said.
