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The Fiat 500X

Fiat Chrysler Automobiles Korea (FCA Korea) sold vehicles in South Korea with doctored exhaust gas calculations, a report reveals.

In addition to penalties, FCA Korea could also face criminal charges.

The Ministry of Environment announced on Dec. 4 that exhaust gas values had been illegally manipulated on 2,248 FCA vehicles, namely 1,610 Jeep Renegades sold between Mar. 2015 and July 2016 and 818 Fiat 500X SUVs sold between Apr. 2015 and July 2017. An investigation showed the exhaust gas values to have been falsified by halting or reducing operation of the exhaust gas recirculation (EGR) modules for reducing nitrogen oxides.

The ministry plans to revoke exhaust gas certification for the 2,248 vehicles in question by the end of the month and take action against FCA Korea, including the issuance of a defect correction order, imposition of penalties, and a criminal complaint. Once exhaust gas certification has been revoked, owners of affected vehicles must undergo corrective measures for the defects – which appear likely to take the form an update to the exhaust gas software.

Vehicles sold by FCA in Europe have included updated software since Aug. 2016, following the emergence of exhaust gas tampering allegations. FCA Korea was also found to have sold 1,377 Jeep Renegade vehicles with revised software through July 2018 without going through alteration certification procedures. The Ministry of Environment also plans to impose penalties and pursue a criminal complaint in that case.

A total of 3,805 vehicles are affected in the exhaust gas tampering and software change non-certification cases. Total penalties are predicted to amount to 3.2 billion won (US$2.9 million), equivalent to 18% of FCA’s annual operating profits of 17.3 billion won (US$15.6 million) last year.

By Choi Ha-yan, staff reporter

Please direct comments or questions to [english@hani.co.kr]