Fiat Chrysler Automobiles NV could pay more than $650 million to settle lawsuits from the U.S. Justice Department and diesel car owners over the automaker's alleged manipulation of emission tests, the Associated Press reported Jan. 10, citing a person with knowledge of the settlement.
As part of the deal, Fiat Chrysler reportedly will pay $311 million in penalties to the federal government and California regulators, as well as $72 million to settle litigation brought by other states. The company will also pay vehicle owners about $2,800 each, or a total of about $280 million in compensation, the source told the news agency.
The carmaker is being sued after the U.S. Environmental Protection Agency in January 2017 accused the company of using illegal software to cheat emissions tests of about 104,000 Jeep SUVs and Ram pickup trucks in the U.S.
After more than a year, the Justice Department sent a settlement offer to Fiat Chrysler's lawyers, ordering the company to pay "substantial" civil fines, in addition to reducing future excess emissions and offsetting excess pollution.
Fiat Chrysler has since denied the allegations but has allocated €713 million to cover costs related to the case in October 2018.
The settlements are expected to be formally announced Jan. 10 by the Justice Department and the EPA, the report said.
An attorney for Fiat Chrysler did not immediately respond to the Associated Press' requests for comment.