Fiat Crashes After EPA Accuses Carmaker Of Cheating Emissions Tests, "Skirting Rules & Got Caught"

Tyler Durden's picture

It appears that, as we first predicted back in 2015, they were all doing it.

Fiat Chrysler shares are collapsing following EPA accusations that the automaker engaged in a similar scheme as Volkswagen, and used cheating software to beat diesel emissions tests, and this violated pollution laws. Why? Maybe it has something to do with Fiat's appeasement of the Trump administration, when last Sunday it announced a plan to Invest $1 Billion in the U.S. It forgot, however, that for the next 8 days, it is still Obama's country.

Sarcasm aside (correct though it may be), the EPA told the automaker it believes its auxiliary emissions control software allowed vehicles to generate excess pollution in violation of the law.

A person briefed on the matter told Reuters, Fiat Chrysler does not agree with the EPA's assessment. An automaker can use an auxiliary emissions control device in limited circumstances to protect the engine from damage, but it must be declared to regulators. 

The EPA allegations comes amid rising scrutiny by EPA of automaker emissions after Volkswagen AG admitted to cheating diesel emissions tests in 580,000 U.S. vehicles.

The EPA has for months declined to certify Fiat Chrysler's 2017 diesel vehicles for sale in the United States, but the automaker has continued to sell 2016 diesel models. In September 2015, EPA said it would review all U.S. diesel vehicles following an admission from Volkswagen that it installed software in cars allowing them to emit up to 40 times legally permissible level of pollution.

On Wednesday, VW agreed to pay $4.3 billion in criminal and civil fines and plead guilty to three felonies for misleading regulators and selling polluting vehicles.

The EPA has extensively investigated the vehicles and Fiat Chrysler has turned over significant documents as part of the probe, two people briefed on the matter said.

Fiat Chrysler could face fines of up to $37,500 per vehicle if it is proven that it violated emissions rules. The probe covers Fiat Chrysler diesel trucks and SUVs from the 2014-2016 model years.

Fiat Chrysler told CNBC it would contest the EPA's findings and denies it used "defeat software."

The stock crashed over 14% and was halted.

Fiat Chrysler is widely held among hedge funds... (and we note that Japan's GPIF holds over 10 million shares)


The supply chain is also being hit.


As AP reports,

Two people briefed on the matter say that the U.S. government is accusing Fiat Chrysler of violating the Clean Air Act on some of its diesel engines.


The Environmental Protection Agency has scheduled a news conference for Thursday morning to release details of the matter. The people briefed on the matter didn't want to be identified because the formal announcement hasn't been made.


The move comes one day after federal prosecutors announced that Volkswagen would plead guilty to criminal charges and pay a record $4.3 billion penalty for cheating on emissions tests.

The Environmental Protection Agency has scheduled a call with reporters at 11 a.m. in Washington to “take questions on a recent development regarding a major automaker.” Representatives for Fiat Chrysler didn’t immediately respond to requests for comment.


EPA just released press release confirming the accusations.



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Haus-Targaryen's picture

Maybe they'll actually go bankrupt this time. 


Dalcan5's picture

Yes they will but Trump congratulated them on creating new jobs in America just the other day hahahahahaha.....he knows NOTHING retards.

TalkToLind's picture

Unpossible. You didn't know that Chevrolet is God's Chosen car company?

Ignatius's picture

Like a rock... like Iraq?  I get confused.

RedBaron616's picture

Sorry, Honda is God's Chosen Car Company. Why? Haven't you read that the Disciples were all "in one Accord?"

MasterControl's picture

All the EPA has to do is accuse and the money starts flowing.
Same goes for the department of just-us.
All part of the progressive shakedown.

walküre's picture

Haus, the truth is that the Americans don't like the fact that any European company could own such an American icon as Chrysler. It has everything to do with the incoming administration. I'm already wondering if they will try and undo the Bayer-Monsanto deal this year. Suits me well. I never liked that deal to begin with.

RedBaron616's picture

Hard to believe tax dollars were used to bail Chrysler out, only to sell them to the Italians. Go figure. This time I hope they do go under. Tired of crony capitalism!

Cole The Bar's picture

As long as Dodge survives I don't care. I Freaking love my SRT8 challenger!

emissions be damned!

nuubee's picture

You see what happens Larry when you try to legislate the laws of physics? You see what happens??

PirateOfBaltimore's picture

Diesel the kind accused of contributing to global cooling in the 70s?


If diesel particulates cause cooling, shouldn't we encourage that if global warming is real?


I'm confused.

zuuma's picture

Diesels are very efficient for the work they do. The emissions, while visible sometimes, are actually less than gas engines for any given amount of work performed. We should want more diesels.
Gasser Emissions dropped like a stone when ECUs & fuel injection became the norm in USA cars starting in the mid 80's.
Now, regulations keep coming along at massively increasing cost for tiny gains. Right now, a tailpipe puts out 99.99992% CO2+H2O vapor.
Or stated otherwise: 0.00008% bad things.
But no. We MUST get to 0.00007% bad things! It's for the CHILDREN. Nevermind the $50 Billion cost.

EPA was a good thing, once upon a time. Now just another harmful, malignant Federal organism, sucking in ever more resources & growing in costly overreach.
Kill it.  Let the state EPA's watch for pollution.  MUCH more accountable to the voters that way.

Nels's picture

One of the first things the EPA did was to ignore its own research and ban DDT. 

It was never a good thing, just a pleasant pipe dream that involved a lot of cognitive dissonance, as in "wouldn't it be nice if some angelic government agents could decide what the right thing was and force us to do it."

Offthebeach's picture

"...Larry...Larry look at me. See this bag Larry? It's diesel conditioner made from the ballsac sweat glands of unicorns. Tomorrow....look at me Larry...when the CalEPA puts the exhast pipe into your dads chamber, I want...Larry, look at me..I want you to pour this into the fuel...."

DeeZ_nutZ's picture

not to worry, they will create jobs and shit.  

Rainman's picture

They Fixed It Again Tony !!

boattrash's picture

Can't wait to see if they pursue the fines as aggressively as they did German VW Mfg.

Justin Case's picture

Part one went so well it's time to release part II. Now the merican consumers can also jump on aboard this gravy train.

VW part II

insanelysane's picture

Clean diesel was fake news.

angry_dad's picture
angry_dad (not verified) insanelysane Jan 12, 2017 3:49 PM

tell me more about clean coal too

BabaLooey's picture


Fiat sucked, is sucking, and now rigs the sucking.

Butt-hurt buyer: FIX IT AGAIN TONY!!!!!!

Tony: Gotta wait for the Microsoft update patch. Re-booting takes time.

Jay's picture

They weren't "all doing it". Mazda, Honda, and several other makers of very advanced diesel engines won't sell them in the US because they can't meet the emission laws without severely compromising performance or economy or both.

walküre's picture

Bottom line is.. Americans have missed out decades of reliable and economical good solid Diesel technology.

Instead they built V8s and V10s around 10 yrs ago for their rigs which get little better than 10 mpg.

American engines are crap for the most part. Oil changes every 5000 mls are completely outdated. Our Diesel vans send us to the dealer every 20,000 miles for an oil change and tune up.

RedBaron616's picture

Diesel vans are one thing. Diesel cars are not economical. Whatever gains one gathers one way, one loses another. I know a friend who changes his own oil in his diesel Ford pickup and it still costs about $90. Air filters are incredibly expensive also, not to mention paying more at the pump each and every time. When I can get 283K out of a 2000 Accord 4-cylinder gas engine, why would I bother with diesel?

walküre's picture

and yet every 2nd passenger car in Europe is a Diesel...

they pay 25 cents less per ltr in Europe.... Diesel is cheaper to refine than their 92 octane min.

nobody in Europe puts 86 oct in their tank either

Diesel cars in Europe make sense, not so much in the US where everyone can drive a gutless 3 ltr V6

your 4 cyl. Honda is the exception

Offthebeach's picture

Dirt common to get 250k miles out of engins now. Plugs 100k miles. Oil changes are common at 10,000 or more miles, but that is more a function of oil technology. Ive had 3 VWs. One diesel Jetta which I did nothing to. Another 2.0 Jetta and a 1.8 Passat. Liked them all but pains to work on. Like a special nut for the oil plug? Take the whole nose off for a timing belt? ( I didn"t) Also very sensor senitive to voltage range. Have a F150 now. It's boring stupid relible and fall asleep easy to work on.

Cole The Bar's picture

My parents had a diesel Jetta. 2006 I think. Kept breaking over and over so they got rid of that piece of shit.

My 6.1L V8 gets around 21-22mpg. The more fun I have driving it, the less mpg. Fair trade if you ask me ;) especially considering that my previous car's V6 got like 16-17mpg and absolutely sucked to drive

CRM114's picture

Let's face it. The EPA have written regulations which the industry cannot economically provide. That's a Government problem - Let's hope Mr T can fix it!

cherry picker's picture

What is the EPA gonna do when the software on cow farts in California doesn't work by 2030?

Are they gonna fine the cows, send them to jail or murder them all so people won't have any milk to drink?

Time to get rid of all of it, that top level government and wanna be clones.

Martian Moon's picture

Thanks to bureaucrats it is now impossible to buy a diesel truck that runs without outrageous repair bills, an A/C that can actually cool, a toilet that flushes, a shower that washes, a washing machine that cleans clothes etc, etc .... how much is enough before we kick these bums to the curb

TalkToLind's picture

You can't get on an airplane either without a TSA flunky fondling your wife and daughters...and YOU.

hotrod's picture

Low gallon flush is now a double flush, and the NEW washing machines SUCK.  I have done a direct comparison with clothes in my new new NO WATER WASH machine and one with full fill at the laundromat.  The clothes are so much cleaner at the laundromat.  Also because my NEW machine lets in so little water, I CAN NEVER GET HOT WATER TO THE MACHINE BECAUSE THE DISTANCE TO MY HOT WATER HEATER IS TOO GREAT.  ALL I GET IS COLD IN LINE WATER ALL THE TIME.

walküre's picture

if the heater is too far from the washer...

your house is too big... first world problems

CRM114's picture

Not necessarily - could be that the architect is a f#ckwit - most are.


I designed my own house. Distance from water heater to washing machine - 18 inches.

ToSoft4Truth's picture

Trump said he'd get rid of the EPA, but the EPA is a cash-cow.



WasNotWuz66's picture

cash cow if by that you mean stealing the cash from a business; it's more like a shady mob hustle

ali-ali-al-qomfri's picture

and cows are causing global warming with all those heavy methane farts,

full circle logic applied

Dalcan5's picture

Hey ZH retards, remember just a few days ago Trump was congratulating Fiat Chrysler for 'creating' new jobs in America BaHahahaha....who do you think the fool is today?......can you say pussy grabbing shower boy! He's been had and he isn't even President yet.

BabaLooey's picture

You still here fuckley?

Some muzzie steal your shine box?

The dindu 7/11 must be hiring - go there dingus - since bOOOOObs must have fallen into the Slurpee machine.

Dalcan5's picture

Yes sir....sorry, I know this is all you have loser but reality has just come to this board. Eat that burger yet fatass?

gunbunny's picture

It sounds more like payback from a butt-hurt .gov agency on it's last legs lashing out at a company for dealing favorably with the new president elect.  You can't tell me that they just pulled FIAT's name out of a hat (of all the car makers supplying clean diesels) rather than react to them favoring the "enemy" over their preferred candidate. 


Maybe Fiat/Chrysler was going to put a diesel motor in their new small truck they want to produce.  The EPA can't have that happening.

Dalcan5's picture

Don't worry my fine brain dead friend....these problems will disappear when Trump eliminates the EPA and you'll go back 50 years and more love Canals and other environmental disasters.......corporate America will love it while they poison and screw you endlesly

mary mary's picture

No job yet?  Watch "The Intern" movie.  THAT's how you do it!

RagaMuffin's picture

Anybody wanna buy a  ram2500, 100k ;-)

E.F. Mutton's picture

Some guy at EPA named Corleone said Fiat was late on their "dues"

TalkToLind's picture

How come da EPA isn't giving the Chevy Cruze Diesel any scrutiny? Does Chevrolet make MAGIC diesel engines...that can defy the laws of physics?  

Break_the_Bank's picture

When the history books are written of this first couple decades of the 21st century, my guess is they will label it "The Age of Corruption."

It seems everywhere one looks these days, corruption is easy to find. But regulators and the Justice Department seem to look away. Just like they don't see the inflated bubbles around them. 

Jason T's picture

too many regulations.