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March 8, 2017

GENEVA – FCA still wrangling with government over diesel emissions

Fiat Chrysler Automobiles (FCA) still faces a ban on selling some 2017 diesel models in the US while awaiting a government decision on legal action.

Fiat Chrysler Automobiles (FCA) still faces a ban on selling some 2017 diesel models in the US while awaiting a government decision on legal action.

"We have been dealing with the EPA and CARB, we have engaged legal counsel. The only thing I can tell you is that we continue to work with the agencies to try and resolve this," chief executive Sergio Marchionne told Reuters in Geneva.

"We continue to offer full cooperation to the agency to try get this issue resolved. I think my main objective now is to get certification for the 2017 models," he said.

In January, the Environmental Protection Agency (EPA) and California Air Resources Board (CARB) alleged the automaker had illegally using hidden software to allow excess diesel emissions from 104,000 US trucks and SUVs. The EPA has refused to grant Fiat Chrysler (FCA) approval to sell 2017 diesel models.

According to Reuters, the US Justice Department last week told a judicial panel (in a previously unreported filing) the government "continues to consider whether to commence judicial proceedings in connection with the violations alleged" by the EPA.

The filing said Fiat Chrysler's actions "may have violated other federal laws as well. The United States may well become involved in litigation with FCA regarding this matter to vindicate important environmental and other federal interests."

The EPA is continuing to "evaluate certification of new model year 2017 vehicles," the filing said.

Marchionne told the news agency at the show if the automaker wins certification for the 2017 models, then "I think we can take that solution and apply it back to the 2014's to 2016 cars."

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