FCA reveals U.S. state, federal investigates on diesel emissions

Fiat Chrysler Automobiles NV has gotten subpoenas from U.S. federal and state authorities, consisting of the Securities and Exchange Commission, related to supposed excess diesel emissions by a few of its automobiles, the car manufacturer revealed in a filing with the SEC on Tuesday.

On the diesel emissions concern, FCA stated it has “received numerous inquiries, subpoenas and requests for information from a number of governmental authorities, including the United States Department of Justice, the SEC and numerous states’ attorney generals of the United States. We are investigating these matters and we intend to cooperate with all legitimate governmental requests,” FCA stated in its annual report submitted Tuesday with the SEC.

Previously this month, a person briefed on the matter stated the Justice Department has been involved in the matter for over 6 months after getting a recommendation from the Environmental Protection Agency in July. Involvement by the SEC and state chief law officers has not been formerly revealed.

FCA stated Januanry 12 that the Justice Department was examining the matter.

The same day, FCA CEO Sergio Marchionne turned down the allegations, saying there was no wrongdoing and the company never ever tried to create software to cheat emissions rules by spotting when the automobile was in test mode.

FCA in its annual report stated it is unable to anticipate the result of the investigations, however revealed that “the resolution of these matters could have a product negative result on our monetary position, outcomes of operations or cash flows and might negatively affect our credibility with consumers, which might adversely affect demand for our cars.”

In January, the EPA stated the maximum potential fine against FCA could be $4.6 billion.

FCA likewise is dealing with scrutiny of its emissions compliance from European regulators. The French government stated previously that its Consumer Defense Agency had asked a prosecutor to examine FCA’s diesel vehicles.

FCA in its annual report said government and regulatory analysis is anticipated to remain high.”