California environmental inquiry costs Stellantis subsidiary $5,6 million

Thursday, state officials stated that Stellantis subsidiary FCA US will pay $5.6 million to settle an investigation into violations of California's air quality rules.

According to the California Air Resources Board (CARB), among the 30,600 affected vehicles are Ram 1500, Jeep Grand Cherokee, and Dodge Durango models from 2012 to 2018 equipped with 5.7L gasoline engines that did not fulfill certification emission requirements.

FCA will pay a $2.8 million civil penalty and an additional $2.8 million to enhance the number of electric school buses within the South Coast Air Basin. CARB reported FCA's cooperation with the investigation into the emissions problem discovered during state testing.

This instance demonstrates why CARB's compliance testing is so important for safeguarding the state's air quality and public health, according to CARB Executive Officer Steven Cliff.

Stellantis commented on Thursday, "While we accept responsibility, this does not align with our long-term goals," adding that the company is striving to create 25 electrified vehicles in the United States by 2030.

In June, FCA US pleaded guilty to criminal conspiracy and agreed to pay around $300 million to settle a diesel emissions fraud investigation conducted by the Justice Department.

The Justice Department asserted that FCA US utilized deceptive software features to evade regulatory monitoring and fraudulently help diesel vehicles in complying with pollution laws.

In a diesel class action case, FCA US already paid a $311 million civil penalty and more than $183 million in compensation to over 63,000 claimants.

This is the second settlement FCA and California have struck in the past four years.

In 2019, CARB and FCA negotiated a settlement regarding FCA's alleged use of "defeat device software" to circumvent emissions testing on over 100,000 diesel vehicles nationwide.

California was awarded over $78 million of the $500 million settlement.

FCA merged with the French carmaker PSA in 2021 to form Stellantis.