U.S. Seeks Major Fines, Recalls in Fiat Diesel Settlement

  • Government seeks ‘substantial’ civil penalties to settle
  • Automaker has denied it rigged cars to pass pollution tests

Photographer: Gianluca Colla/Bloomberg

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The U.S. Justice Department has offered to settle its emissions-cheating lawsuit against Fiat Chrysler Automobiles NV if the automaker recalls 104,000 vehicles and pays a substantial but unspecified civil penalty.

The proposed framework of an offer was extended to the Italian-American car company last week and included steps it would have to take to mitigate its past pollution and make internal changes to prevent future violations of environmental rules, according to a copy of the settlement offer obtained by Bloomberg News.