Fiat Chrysler agreed to pay US $800 million to resolve claims about illegal software use

Fiat Chrysler Automobiles NV agreed to pay US $800 million to resolve claims by the US Department of Justice and the state of California that the automaker used illegal software to generate false results in diesel vehicle emission tests.

According to court documents filed Thursday, the agreement includes US $311 million in civil penalties, up to US $280 million to resolve complaints filed by owners of diesel cars and extended warranties worth 100 million dollars.

Fiat Chrysler said in a statement that “it maintains its position that the company did not participate in any deliberate scheme designed to install devices to cheat in emissions tests.”

The deal, which covers 104,000 diesel vehicles from Fiat Chrysler models manufactured between 2014 and 2016, also includes US $72.5 million for state civil penalties and US $20 million in payments to California.

As part of the agreement, Fiat Chrysler did not admit any irregularity. The German firm Robert Bosch GmbH, which provided some components for diesel vehicles, also agreed to pay 27.5 million dollars to resolve claims of the owners of the cars involved.

The owners of these cars will receive an average of US $2,800 to get software updates as part of the emissions review calls, said Fiat Chrysler.

The Justice Department said the agreement does not resolve an ongoing criminal investigation into the actions of Fiat Chrysler. The United States Securities Commission (SEC) is also investigating the issue.

Shares of Fiat Chrysler rose 0.7% to $ 13.86 on Thursday at 1737 GMT on the New York Stock Exchange.

The pact also faces legal challenges in Brazil. Workers and leftist politicians obtained court orders in December to block the agreement, but they were quickly reversed. The agreement could face future precautionary measures since the cases are still pending.

Minority shareholders also presented legal requirements that have not yet been resolved. Embraer and Boeing said in a statement that they expected the agreement to have final approvals before the end of 2019.

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