FROM THE COMMONWEALTH OF KENTUCKY OFFICE OF THE ATTORNEY GENERAL

Andy Beshear

Attorney General Andy Beshear announced today that his office is finalizing settlements with automaker Fiat Chrysler and auto parts supplier Bosch that when final will provide restitution to nearly 2,000 Kentuckians and make a combined payment of more than $1 million to Kentucky.

Kentuckians impacted are those who purchased or leased 2014-2016 Jeep Grand Cherokees or Ram 1500 Diesel trucks manufactured by Fiat Chrysler that Beshear and other states allege in their multistate settlement contained illegal rigged emission device software supplied by Bosch that tricked federal and state emissions tests.

The settlements Beshear is finalizing require the companies to fulfill their obligations as part of a national class action settlement pending in the U.S. District Court for the Northern District of California. Assuming all owners and lessees nationwide participate, this will result in total available restitution of approximately $307 million, including approximately $2,908 to affected owners and $990 to lessees of vehicles in Kentucky.

“These companies directly harmed thousands of Kentuckians in their attempts to undermine emissions testing while claiming these vehicles were environmentally friendly,” Beshear said. “For this wrongful conduct, they will not only have to pay restitution to Kentuckians but also fix the vehicles.”

Beshear said the companies are being required to eliminate the illegal rigged emission device software through a software “flash fix,” and provide eligible owners and lessees extended warranties.

Beshear said Kentuckians could visit the website http://www.ecodieselsettlement.com for more details.

Kentucky’s settlement with Fiat Chrysler will prohibit the company from engaging in future unfair or deceptive acts and practices.

Kentucky’s settlement with Bosch settles claims the company facilitated the installation of rigged software for customer Fiat Chrysler and concealed its misconduct from regulators and the public.

Bosch became the subject of an investigation by AGs in 2016 after Volkswagen, also a Bosch customer, was found to have installed rigged software on its Turbocharged Direct Injection (TDI®) diesel-engine automobiles to cheat emissions tests.

Beshear reached a multi-million-dollar settlement in 2016 with Volkswagen for 3,200 Kentuckians and $3.5 million in civil penalties for the state’s General Fund.

Under the terms of the proposed settlement, Bosch is under injunctive terms that require the company to maintain robust processes to monitor compliance and to refuse to accommodate requests for software development and programming that could result in the installation of illegally rigged software.

The companies will pay Kentucky more than $1 million in civil penalties combined that Beshear will send to the state’s General Fund.

In the last two weeks, Beshear has secured more than $4 million for the state’s General Fund for lawmakers to appropriate during the 2020 legislative budget session. The settlements include Chrysler Fiat/Bosch, Neiman Marcus Group LLC, for-profit college company Career Education Corp. and Wells Fargo.

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