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News Fiat Chrysler to pay around $650M in emissions cheating case By MICHAEL BALSAMO and

Fiat-Chrysler to pay more than $300 million in emissions cheating settlement: Source

According to a media report, Fiat Chrysler Automobiles (FCA) will pay more than US$ 650 million to settle a case over diesel emission cheating.

The settlement includes fines and more than $300 million in "consumer relief" and requires Fiat Chrysler to establish a recall program offering motorists an approved plan for modification their emissions systems. First, FCA will recall approximately 100,000 examples of the 2014-2016 Ram 1500 EcoDiesel and Jeep Grand Cherokee EcoDiesel.

Under the deal, the company will also need to pay about $280 million to compensate vehicle owners - resulting in payouts of about $2,800 per owner - as well as another $72 million to settle claims made by other states, the person said. The VW scandal extended to some 11 million other vehicles the company sold worldwide and led to USA criminal charges against eight people.

The affected vehicles are powered by a 3.0-litre diesel engine.

The settlement is scheduled to be announced Thursday by the Justice Department in Washington, the person said.

Under the deal, the company may be subject to additional penalties if at least 85 per cent of the vehicles aren't repaired within two years.

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Fiat Chrysler won't admit wrongdoing in the settlement.

Fiat Chrysler shares were up 1.2 percent at $15.96 in NY near midday on Thursday. The company also agreed to buy back some vehicles, fix others, pay to mitigate environmental harm and settle lawsuits for a cost of more than $30 billion. The government says the software acted as a defeat device as it would fully activate emission controls during EPA and California emissions testing, but "reduce or deactivate emission controls" during real world driving.

"The settlements do not change the company's position that it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests", said the company's statement. About 500,000 VW vehicles were involved in the US cheating scandal.

Asked about the message the settlement would send, acting Environmental Protection Agency Administrator Andrew Wheeler responded: "Don't cheat".

At issue is what CARB calls "auxiliary emission-control devices" (in other words, software code) that can allow excess pollution at specific times, such as during a cold start or for dumping fuel to clean the particulate filter, that must be disclosed.

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