The Department of Justice is expected to announce a major settlement with Fiat-Chrysler Automobiles on Thursday, resolving allegations that the automaker used illegal software to circumvent laboratory emissions inspections on 100,000 diesel vehicles, according to a source briefed on the matter. German auto supplier Robert Bosch GmbH, which provided some diesel components for the vehicles, also agreed to pay $27.5 million to resolve claims from diesel owners.
The affected vehicles are powered by a 3.0-litre diesel engine.More news: Trump wishes Jeff Bezos luck in his divorce and predicts 'a beauty'
Volkswagen AG in January 2017 pleaded guilty to criminal charges and agreed to pay some $4.3 billion in USA penalties for its scheme to deliberately rig hundreds of thousands of US diesel vehicles to cheat on emissions tests. The company has set aside more than $30 billion to cover costs and settlements, including $15 billion to buy back or fix vehicles in the U.S.
Fiat Chrysler will agree to corporate governance reforms meant to prevent future emissions violations under the agreement, the person said.More news: IBM launches world's first commercial quantum computer
Representatives for Fiat Chrysler and the Justice Department declined to comment. "Today's settlement sends a clear and strong signal to manufacturers and consumers alike - the Trump administration will vigorously enforce the nation's laws created to protect the environment and public health".
The case, announced by the state Department of Justice and the California Air Resources Board, is similar to the multibillion-dollar settlement made by Volkswagen over the use of the rogue software. That is valued at $50 million to $70 million, officials said.More news: Samsung Unveils its Expanded Vision of Connected Living at CES 2019
Fiat Chrysler shares were up 1.2 percent at $15.96 in NY near midday on Thursday.