Fiat Chrysler Automobiles CEO Sergio Marchionne hinted about some upcoming good diesel news during a conference call with reporters Thursday, and sure enough the automaker followed through Friday by announcing US regulators will allow the company to produce and sell 2017 Ram 1500 pickups and Jeep Grand Cherokee SUVs with 3-liter diesel engines.
The Environmental Protection Agency certified those two vehicles as now compliant with the Clean Air Act – a move that FCA hopes will help end a government lawsuit alleging the company installed illegal pollution control software on 104,000 of its 2014 through 2016 3-liter diesels.
“The approvals announced today represent a significant step toward resolving the issues raised by EPA and ARB,” Marchionne said in a statement. “We appreciate the efforts of the agencies in working with us to achieve this milestone. We are anxious to build on this progress to make appropriate updates to the emissions control software in our earlier model-year vehicles.”
The news should also bode well for legions of Wrangler lovers who hope FCA will put the 3.0L diesel into that vehicle. The company is set to launch a redesigned Wrangler JL in November that will officially arrive with two gas options; a 3.6L Pentastar engine and 2.0L Hurricane turbo. However, FCA has been seen testing a diesel model that many believe will show up for the 2019 model year.
In May, the Justice Department, representing the EPA, sued FCA alleging it used a software "defeat device" on the 2014 to 2016 diesels that turned pollution controls on during government lab tests and turned them off while on the road. As a result, the government alleged those vehicles spewed out harmful nitrogen oxide in excess of legal limits. FCA has contended that it did not install the software with intent to cheat on tests. Following that lawsuit, FCA sent the EPA a certification request for its 2017 diesel vehicles and had been awaiting the result.
Carmakers cannot sell vehicles without getting certification from the EPA, so FCA was forced to halt production and sale of those 2017 Ram 1500 and Grand Cherokee diesel models. However, the company recently resumed production at a slow rate in anticipation of approval – leading many to speculate a deal was nearing completion.
FCA said it will continue to work with EPA and ‘seek their permission’ to use a version of the modified software to update emission control systems in 2014-16 diesel Jeep Grand Cherokees and Ram pickups. The automaker believes this updated software will address EPA concerns about emissions on those vehicles.
A similar lawsuit was filed against VW, but was settled along with claims from car owners. That settlement could end up costing VW over $20 billion. Numerous Ram and Grand Cherokee owners also have sued Fiat Chrysler.
