A nasty exchange between Cynthia Giles of the Environmental Protection Agency and Fiat Chrysler boss Sergio Marchionne has gripped the attention of North American car owners. Ms. Giles, assistant administrator of the EPA, today accused Fiat Chrysler equipping more than 100,000 diesel Jeep vehicles with software which she said represented a “clear and serious violation of the Clean Air Act.” The accusation applies to 2014, 2015 and 2016 Jeep Grand Cherokee and to light-duty Ram 1500 trucks with 3-liter diesel engines. Marchionne seemed livid in categorical denials and saying he was offended by the agency’s “incredibly belligerent” attacks on the auto industry. He said his company had done “nothing” illegally and those who said differently were “smoking illegal material.” But the EPA pointed to what it called “eight different undisclosed software programs” installed on the vehicles, collectively causing them to spew harmful nitrous oxide emissions which can exacerbate respiratory conditions. The allegations will raise fears among Jeep and Ram diesel owners that they are about to face the nightmare of devalued vehicles and long battles for compensation. But analyst Michelle Krebs says she does not think this is the same as the VW scandal.
