Title: Stellantis Unit Settles California Air Quality Violations Probe for $4.2M

Author: David Shepardson

On Monday, California confirmed that FCA US, a division of Stellantis, has reached a settlement of $4.2 million to conclude an investigation into excessive emissions. The investigation was conducted by the California Air Resources Board (CARB) and concerned vehicles released between 2014 and 2016.

The vehicles implicated in the air quality regulation violations included the Ram ProMaster models 1500, 2500, and 3500, all equipped with 3.0L diesel engines. According to California authorities, these vehicles contained an unauthorized device that bypassed emissions control, leading to the release of approximately 55 tons of excess oxides of nitrogen into the atmosphere.

Stellantis, listed on the NYSE, had a similar run-in with California in 2022 over allegations involving petrol-powered vehicles. The company resolved the matter with a $5.6 million settlement. Stellantis has yet to comment on the recent settlement. As part of the agreement, the company will recall the implicated vehicles to adjust the emission control system to comply with state regulations.

The settlement includes a civil penalty exceeding $2 million that will be directed to the state’s Air Pollution Control Fund. An additional $2.1 million will be allocated to a project aimed at incentivizing ocean-bound cargo vessels to reduce speed during peak whale and ozone seasons, a measure intended to benefit wildlife and air quality.

In related news, FCA US pled guilty to criminal conspiracy in June 2022 in a separate federal emissions investigation conducted by the U.S. Justice Department. The company agreed to a plea deal, paying approximately $300 million to resolve allegations of diesel emissions fraud.

Back in 2019, FCA settled with California over claims that it used “defeat device software” to bypass emissions testing on over 100,000 diesel vehicles nationwide. From the $500 million settlement, California received over $78 million.