U.S. engine maker facing largest Clean Air Act penalty ever over emissions test cheating accusations

The U.S. Environmental Protection Agency (EPA) has proposed what could be the largest penalty ever for a violation of the Clean Air Act, a record-setting $4.4 billion fine for Fiat Chrysler Automobiles (FCA). The action results from a four-year investigation into allegations that FCA had used software to cheat on emissions tests. According to The New York Times, it is the largest penalty ever proposed by the EPA for a violation of the act.

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The EPA contends that nearly 104,000 diesel vehicles that were sold in the United States were equipped with illegal and undisclosed software and defeat devices that caused the vehicles to emit much higher levels of air pollutants than allowed under the Clean Air Act. In addition, the agency says that FCA deliberately failed to disclose the use of the software, in an effort to avoid being subject to penalties.

EPA Administrator Andrew Wheeler said in a statement, “We expect better from a major automaker. FCA US’s actions threatened public health and failed to meet the standards these companies agreed to meet when they certified their vehicles. Today’s actions send a clear and strong signal to manufacturers and consumers: The Trump Administration will vigorously enforce compliance with the law.”

FCA has issued a statement expressing disagreement with the EPA’s proposed penalty, saying “We intend to defend ourselves vigorously, particularly against any claims of misconduct on our part. A notice of violation is not a final judgment or finding and FCA US expressly denies EPA’s allegations that it engaged in any deliberate scheme to install defeat devices to cheat U.S. emissions tests.”

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