Shares of Fiat Chrysler dropped more than 11.5% in morning trading Thursday after the U.S. Environmental Protection Agency (EPA) issued the company a notice of violation related to its use of software to manipulate emissions tests.
According to the EPA’s statement, Fiat Chrysler used software to manipulate emissions in vehicles that would have otherwise violated the Clean Air Act. The EPA says that the allegation covers 104,000 vehicles, including 2015, 2015, and 2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3-litre diesel engines.
The news comes just one day after Volkswagen agreed to admit guilt and pay $4.3 billion in criminal and civil fines related to its diesel emissions cheating scandal. About 11 million Volkswagen vehicles worldwide were equipped with a software that enabled it to cheat on emissions tests (Also read: Volkswagen Nears $4.3 Billion Emissions Scandal Settlement).
“We continue to investigate the nature and impact of these devices. All automakers must play by the same rules, and we will continue to hold companies accountable that gain an unfair and illegal competitive advantage,” said EPA Assistant Administrator Cynthia Giles.
Fiat Chrysler issued a response statement, saying that it was “disappointed” in the EPA’s decision to issue the violation and that it believes its emission control systems meet the applicable requirements. The company also implied it was anticipating a smooth transition into the Trump administration.
“FCA US looks forward to the opportunity to meet with the EPA's enforcement division and representatives of the new administration to demonstrate that FCA US's emissions control strategies are properly justified and thus are not ‘defeat devices’…” said Fiat Chrysler.
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Fiat Chrysler (FCAU) Stock Plummets On Emissions Cheating Probe
Shares of Fiat Chrysler dropped more than 11.5% in morning trading Thursday after the U.S. Environmental Protection Agency (EPA) issued the company a notice of violation related to its use of software to manipulate emissions tests.
According to the EPA’s statement, Fiat Chrysler used software to manipulate emissions in vehicles that would have otherwise violated the Clean Air Act. The EPA says that the allegation covers 104,000 vehicles, including 2015, 2015, and 2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3-litre diesel engines.
The news comes just one day after Volkswagen agreed to admit guilt and pay $4.3 billion in criminal and civil fines related to its diesel emissions cheating scandal. About 11 million Volkswagen vehicles worldwide were equipped with a software that enabled it to cheat on emissions tests (Also read: Volkswagen Nears $4.3 Billion Emissions Scandal Settlement).
“We continue to investigate the nature and impact of these devices. All automakers must play by the same rules, and we will continue to hold companies accountable that gain an unfair and illegal competitive advantage,” said EPA Assistant Administrator Cynthia Giles.
Fiat Chrysler issued a response statement, saying that it was “disappointed” in the EPA’s decision to issue the violation and that it believes its emission control systems meet the applicable requirements. The company also implied it was anticipating a smooth transition into the Trump administration.
“FCA US looks forward to the opportunity to meet with the EPA's enforcement division and representatives of the new administration to demonstrate that FCA US's emissions control strategies are properly justified and thus are not ‘defeat devices’…” said Fiat Chrysler.
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The stocks you see in today's headlines may not be in the news tomorrow or next week. If you're looking for profitable long-term investments, you may be interested to see what Zacks Research is recommending to our private members. These moves have double and triple-digit profit potential. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this exclusive information? Click here>>