Diesel Emissions: DOJ Sues FCA As Automaker Asks to Fix Alleged Defeat Device on 2014–16 Diesels

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The U.S. Department of Justice has filed a civil lawsuit alleging that FCA used a “defeat device” to circumvent emission controls in about 104,000 Jeep Grand Cherokee and Ram 1500 diesel models from the 2014 through 2016 model years. It follows news from late last week that the automaker is asking the U.S. Environmental Protection Agency and the California Air Resources Board (CARB) for permission to install modified emission software on those models, which have already been the focus of a federal investigation.

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The automaker announced the proposal while saying it has formally filed an application for diesel-vehicle emission certification with the EPA and CARB for its 2017 Jeep Grand Cherokee and Ram 1500 diesel vehicles. FCA said the filing comes after “many months of close collaboration” with the EPA and CARB, with extensive testing of the vehicles. Spokespersons from the EPA and DOJ declined to comment on the filing.

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Last week Reuters reported the Department of Justice was preparing a civil lawsuit against FCA if it could not reach an agreement on excess diesel emissions. The DOJ has had a criminal investigation into FCA’s conduct in progress since last year, Reuters reported. The automaker reportedly faces up to $ 4.6 billion in fines, according to the EPA, and has also been subpoenaed by other government agencies, including the Securities and Exchange Commission.

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In January, the EPA alleged that Jeep Grand Cherokees and Ram 1500s with 3.0-liter diesel engines may have emission-control equipment that violates the Clean Air Act, but stopped short of accusing FCA of using a defeat device, which is software used to trick emissions tests.

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The EPA has said FCA failed to disclose engine-management software and issued a Notice of Violation (NOV). The EPA’s NOV stems from expanded testing that began in September 2015, which was when Volkswagen publicly admitted to cheating on emissions tests.

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The regulator alleges the FCA trucks had at least eight undisclosed auxiliary emission-control devices, or AECDs, that reduced the effectiveness of emission controls when driving at high speeds or during extended driving. That means the vehicles emit what the EPA defines as a harmful level of nitrogen oxides, or NOx.

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On Friday, FCA said it believes installing the modified emission software on the 2014–16 trucks  “will address the agencies’ concerns regarding the emissions software calibrations in those vehicles.” The company said that following EPA and CARB approval of the 2017 trucks, it expects the 2014–16 vehicles will be able to get the software updates at dealerships. It said the update will improve emissions performance and will not have an impact on overall performance or fuel efficiency.

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FCA issued a statement Tuesday saying it is reviewing the DOJ’s complaint and is “disappointed” that a lawsuit has been filed. “The Company intends to defend itself vigorously, particularly against any claims that the Company engaged in any deliberate scheme to install defeat devices to cheat U.S. emissions tests,” FCA’s statement reads.

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