(Bloomberg) -- Allegations of cheating pollution standardshave reached U.S. automakers as Chrysler was sued by consumers whosaid engines in some Dodge trucks were rigged to hide thatemissions were as much as 14 times higher than permitted bylaw.
|The Michigan-based unit of Fiat Chrysler Automobiles NV is thefirst U.S. carmaker to be sued by consumers. Similar claims weremade against German carmakers. Volkswagen AG admitted that it installed devicesdesigned to fool emission testing in 11 million cars worldwidein a scandal that may cost it 18.2 billion euros ($19.5 billion).Claims of rigging vehicles have also been made against Mercedes,which has denied the allegations.
|Allegations of fraud, false advertising and racketeering
Chrysler and its diesel technology partner Cummins Inc. hid fromconsumers that pollutants that were supposed to have been brokendown inside the diesel engines instead had a tendency to escape,almost doubling the emissions and reducing the vehicle’s fuelefficiency, according to the lawsuit. The companies are accused offraud, false advertising and racketeering in the complaint, filedMonday in Detroit federal court on behalf of the owners of almost500,000 Dodge Ram model trucks.
The lawsuit against Fiat Chrysler — created in 2014 throughthe merger of Chrysler and Fiat — further calls into questionthe credibility of clean-diesel technology. Excessive emissionsfrom the vehicles exposed the general public to noxious levels ofsmog, according to the consumer complaint.
|Related: VW accused of concealing emissions cheating in Audigas cars
|The claims involving Dodge Ram pickups from 2007 and 2012predate the first known sales of emissions-cheating vehicles byVolkswagen by two years.
|The alleged fraud was prompted by a regulatory shift in 2001,according to the filing. Companies saw an opportunity for growthafter the U.S. Environmental Protection Agency announcedstringent new emissions standards for heavy-duty diesel engineseffective 2010. Chrysler and Cummins bet they could leapfrog theindustry and produce a vehicle to meet those standards three yearsahead of schedule, according to the complaint.
|Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
