As you already know, FCA is currently under scrutiny for an alleged excess diesel emissions by some of its vehicles. FCA disclosed that it has “received various inquiries, subpoenas and requests for information from a number of governmental authorities, including the US Department of Justice, the SEC and several states’ attorneys general.”
Almost two months back, January 12 to be precise, while the Justice Department was investigating the issue, FCA CEO Sergio Marchionne denied all the claims and went on to call these allegations “unadulterated hogwash,” according to Automotive News.
FCA stated in its annual report that “the resolution of these matters could have a material adverse effect on our financial position, results of operations or cash flows and may adversely affect our reputation with consumers, which may negatively impact demand for our vehicles.”
In January, the EPA disclosed that the maximum fine could go all the way up to $4.6 billion. FCA will be adversely affected as the diesel probe could bring some drastic consequences to the next-gen Wrangler, expected to be coming with a diesel powertrain.