The Italian-American automaker will be required to pay around $311 million in fines to the federal government and California regulators, according to the person, who wasn't authorized to discuss the settlement publicly and spoke to The Associated Press on condition of anonymity.
The settlement resolves allegations that FCA used illegal software to get about 100,000 diesel trucks past laboratory emissions inspections and onto USA roads. FCA also will pay another $400 million in total to the EPA, the U.S. Department of Justice (DOJ), CARB, all 50 states, and the U.S. Customs and Border Protection (CBP). The company also reached a $280 million settlement with the owners of 100,000 diesel-powered Jeep SUVs and Ram pickup.
The official announcement is expected to be made later this week by the US Department of Justice and the EPA.
"Fiat Chrysler broke those laws and this case demonstrates that steep penalties await corporations that engage in such egregious violations", Principal Deputy Associate Attorney General Jesse Panuccio told a news conference.
"With this settlement, we are holding Fiat Chrysler accountable and securing important funds for environmental protection efforts".
In 2016, Volkswagen pleaded guilty to criminal charges and agreed to pay a $2.8 billion penalty to settle government lawsuits. The company also agreed to buy back some vehicles, fix others, pay to mitigate environmental harm and settle lawsuits for a cost of more than $30 billion.
California Attorney Xavier Becerra said the automaker "tried to evade these standards by installing software to cheat emissions testing". About 500,000 VW vehicles were involved in the US cheating scandal. He declined to comment when asked about the status of the investigation.
The $25 billion Italian-American carmaker deceived consumers and the USA government by installing so-called defeat devices that "undermined important clean air protections", Andrew Wheeler, acting administrator of the Environmental Protection Agency, said yesterday.