Marchionne Faces Cheating Charge From Weaker Position Than VW
- Fiat Chrysler rebounds in Milan after EPA violation notice
- CEO calls the regulator’s allegations ‘unadulterated hogwash’
Fiat Rises as Investors Question Cheating Charges
The emissions-violations accusations lodged against Fiat Chrysler Automobiles NV Thursday may look like those that have cost Volkswagen AG more than $20 billion -- the kind of money the smaller carmaker doesn’t have.
The good news for the company, which lacks the balance sheet, global scale or brand strength to weather a VW-size scandal, is that the Environmental Protection Agency’s case isn’t as sweeping as what hit the German auto giant. The regulator hasn’t proven Fiat Chrysler installed so-called defeat devices, which VW admitted to using to cheat emissions tests. But the company could still face stiff fines for what the EPA claims was illegal software in 104,000 Jeep Grand Cherokees and Ram 1500s that allowed them to exceed pollution limits on the road.