According to the U.S. Justice Department, an executive from Stellantis (NYSE:STLA) owned Fiat Chrysler’s U.S. business unit has confessed to a felony charge for conspiring to breach the Clean Air Act.
This plea is a consequence of a prolonged investigation by the department regarding emissions fraud related to diesel engine vehicles. The individual involved, identified as Emanuele Palma, was associated with FCA US LL.
According to court documents, Palma, along with others, engaged in a conspiracy to conceal vital information from the United States Environmental Protection Agency (EPA) concerning the design, calibration, and operation of emissions control systems in over 100,000 Model Year 2014, 2015, and 2016 Jeep Grand Cherokee and Ram 1500 diesel vehicles. Additionally, they deliberately misrepresented the vehicles' emissions levels, fuel efficiency, and compliance with U.S. emissions regulations.
“Senior auto officials at FCA US, including Mr. Palma, conspired to circumvent pollution standards and obtain EPA certifications for hundreds of thousands of SUVs and pickup trucks under false pretenses,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Today’s actions reflect the Justice Department’s continued and steadfast commitment to enforcing the Clean Air Act and holding individuals accountable for attempting to circumvent our Nation’s pollution standards.”
Shares of STLA are down 0.13% in afternoon trading on Thursday.