Automaker Fiat Chrysler will pay about $ 300 million in the case of underreporting of automobile emissions in the United States. On Monday, August 1, a federal court in Detroit found him guilty of exhaust gas fraud and sentenced him to pay reparations, as well as to a three-year probationary period, reported US Department of Justice.
Thus, the court approved the settlement agreement, which the concern, which is part of the structure of the international automotive group Stellantis, concluded in June with the US Department of Justice, pleading guilty. US authorities have accused Fiat Chrysler of installing software on more than 100,000 diesel vehicles that underestimates exhaust emissions. We are talking about models Jeep Grand Cherokee and Ram 2014, 2015 and 2016 release.
In 2017, the US Department of Justice filed a formal indictment in this case. In turn, the management of the concern denied their guilt and any parallels with the earlier scandal around Volkswagen. However, already in 2019, Fiat Chrysler was forced to pay hundreds of millions of dollars in civil claims in the United States.
“Dieselgate” and payments of multimillion-dollar compensation
Earlier, a similar scandal erupted in German car industry. Volkswagen carmaker As a result of investigations initiated by the US authorities in September 2015, he was forced to admit that he had installed software on several million cars sold in the world that allowed him to manipulate tests for compliance with environmental standards. “Dieselgate” caused a massive recall of VW products from the US market to eliminate technical falsifications. The concern reached an agreement with the United States authorities on multibillion-dollar fines and compensation payments as part of the settlement of the scandal.
Subsequently, Volkswagen was sentenced to pay compensation in Germanyand others European countriesas well as Australia. In addition, a number of other automakers have been found guilty of manipulating diesel emissions data, including BMW and Opel.
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Volkswagen: the story of one scam
exposure
September 2015. The US Environmental Protection Agency (EPA) publishes a sensational investigation. At least half a million diesel-powered Volkswagens are said to have software installed that allows them to bypass the standards. The emission of harmful substances exceeded the norm by almost 40 times. The automaker faces a fine of no less than $18 billion.
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Volkswagen: the story of one scam
They were warned
Meanwhile, in May 2014, the authoritative American institute ICTT (International Council on Clean Transportation) already drew the attention of the EPA that the exhaust performance of some Volkswagen cars is significantly higher than allowed by law. There was no response from Volkswagen.
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Volkswagen: the story of one scam
Rooted in the past
It soon became clear that the decision to manipulate was made by the automaker back in 2005 – to strengthen the US market. During an advertising campaign in the United States, Volkswagen used the slogan Clean Diesel, claiming that diesel cars are environmentally friendly and reliable.
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Volkswagen: the story of one scam
Millions of cars affected
The fact that millions of cars would be recalled began to be talked about almost immediately. But the final figure was not announced. Initially, 11 million vehicles were reported worldwide. Then – about 8.5 million cars in Europe. In October, it was announced that 2.5 million cars in Germany would be recalled. The campaign will start in 2016.
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Volkswagen: the story of one scam
Here are the worthy fruits of wickedness
Martin Winterkorn, ex-CEO of Volkswagen, suffered a career wreck. Back in April, he secured a contract extension, but exactly a week after the first EPA publications, he resigned. A few days later, a criminal case was opened against him. VW went on to announce the possibility of a civil suit against Winterkorn. There was also a rumor that he would leave all posts in the concern.
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Volkswagen: the story of one scam
Germany confirms fraud
German Transport Minister Alexander Dobrindt said that VW had manipulated the emissions control system in Europe as well. Frauds affected cars with diesel engines of 1.6 and 2.0 liters. In November 2015, the prosecutor’s office announced a new criminal case against VW: this time it is about tax evasion.
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Volkswagen: the story of one scam
Prohibition for sale, further – for operation
Switzerland has imposed a ban on the sale of a number of Volkswagen cars. In October, the California Air Resources Board (CARB) issued an ultimatum to the automaker: in case of refusal to complete problematic cars, CARB promised to seek a ban on the operation of VW cars. Similar problems are observed in other countries.
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Volkswagen: the story of one scam
“I didn’t know anything”
Top managers of VW subsidiaries, Ulrich Hackenberg of Audi and Wolfgang Hatz of Porsche, have been suspended from their duties. The threat of resignation also hangs over the head of the VW representative office in the USA – Michael Horn, but he manages to keep his post. Perhaps, including thanks to his own assurances that he allegedly “did not know anything.”
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Volkswagen: the story of one scam
Searches in factories and private homes
In October 2015, searches were carried out at the Volkswagen headquarters in Wolfsburg. Documents and data carriers were confiscated. The apartments of high-ranking employees were also searched. Ten days later – a new test: a search in France, at the VW plant in the city of Villers-Kotrets. The French Consumer Protection Authority has launched its investigation into VW fraud.
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Volkswagen: the story of one scam
First quarterly loss in 20 years
The automaker allocates 6.7 billion euros for the recall of 11 million vehicles. The consequence of these gigantic spending is VW’s first quarterly loss in 20 years. In the third quarter of 2015, Volkswagen showed a net loss of 1.67 billion euros. Operating losses – 3.5 billion. It is reported that immediately after the publication of the EPA, VW cars were sold at car dealerships at huge discounts – in order to sell at least something.
Author: Grigory Arosev
