Automakers under scrutiny for fraudulent emissions data

The U.S division of Fiat Chrysler Automobiles pleaded guilty to criminal conspiracy earlier this year in connection to a multi-year U.S Justice Department diesel-emissions fraud probe. Now, the automaker has to pay $300 million as a result. Previously, FCA US LLC, formerly Chrysler Group LLC, struck a deal with the Justice Department to pay a $96.1 million fine while also forfeiting $203.6 million.

FCA US LLC in June was charged with making false representations about diesel emissions. Evidence found the false representations in more than 100,000 U.S. 2014-2016 Jeep Grand Cherokee and Ram 1500 cars.

Assistant Attorney General Todd Kim commented, “This resolution shows that the Department of Justice is committed to holding corporate wrongdoers accountable for misleading regulators.”

This is also not the first time the company has been charged with this kind of violation. FCA US had previously paid a $311 million civil penalty as part of a class-action diesel lawsuit. The company also paid 630,000 people involved in the class-action diesel lawsuit a total of $183 million in compensation.

But FCA is not the only manufacturer under fire for this issue. A company-commissioned investigation revealed that Hino Motors, a large affiliate of Toyota is now under fire for emissions fraud. The investigation claims Hino fabricated emissions data on some engines going back to at least 2003, more than a decade earlier than previously disclosed.

In an unusual criticism of Japanese corporate culture, the investigation committee blamed the incident on a work culture where engineers did not feel empowered to confront bosses.

This year, after admitting to fabricating data about emissions and fuel efficiency of four engines, Hino established the committee, consisting of attorneys and a corporate adviser. The committee said in a report that its conclusions, which were made public, describe a rigid environment in which it was challenging for staff to feel “psychological safety.”

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