Italy Faces EU Legal Action Over Fiat Chrysler Diesel Emissions
May 17 2017 - 9:39AM
Dow Jones News
By Laurence Norman
BRUSSELS--The European Commission took a first legal step
against the Italian government on Wednesday, demanding a response
to concerns that Rome has failed to effectively police diesel
emissions of Fiat Chrysler Automobiles NV vehicles.
The commission said it had formally demanded more information
from the Italian authorities on how they enforced rules demanding
that manufacturers justify the use of so-called auxiliary engine
control devices, which can be used to circumvent emission
standards.
The commission also asked Italy to clarify why it had not
imposed corrective measures on Fiat or slapped penalties on the
manufacturer.
Italy has two months to respond to the commission's request,
which triggers a legal process that could end with Italy being
taken to European Union courts and fined. The move comes after
months of talks intended to clarify the steps Italian authorities
had taken.
Wednesday's move is the latest development in a European
emissions scandal which erupted after Volkswagen AG admitted in
2015 using defeat devices to understate the level of carbon-dioxide
emissions it declared to U.S. regulators. That has resulted in
multibillion-dollar U.S. fines on the German company.
Under EU rules, manufacturers can choose in which EU country to
certify their vehicles. Most manufacturers choose their home
country and the commission and environmental experts have long
alleged that national regulators may be too lenient.
In September, Germany urged the commission to investigate Fiat
Chrysler after its motor-vehicle authority found evidence
suggesting the Italian-based firm used software to manipulate
emissions. Italy rejected the allegations.
Italian Transport Minister Graziano Delrio said in a statement
on Wednesday he had asked the commission to postpone any steps to
begin legal action. He said Italian authorities have from the start
ruled out the presence of illegal devices on Fiat models and had
provided all the information the commission had requested.
There was no immediate comment from Fiat.
Defeat devices have long been banned under EU law, though there
are exemptions if manufacturers can demonstrate they are needed to
protect the engine against damage or accident or to ensure safe
operation of the vehicle.
As the emissions scandal has widened, EU authorities have sought
to improve policing of the industry and prevent national
authorities soft-pedaling their oversight of manufacturers.
The commission is pushing legislation which would allow more
independent vehicle testing and increase the checks on cars in
circulation. It would also boost the EU's supervisory powers over
national authorities, test centers and car makers.
Last December, the EU started legal cases against seven EU
member states, including Germany, whose authorities approved
Volkswagen vehicles but didn't apply national rules allowing
penalties to be imposed.
--William Boston in Berlin contributed to this article
Write to Laurence Norman at laurence.norman@wsj.com
(END) Dow Jones Newswires
May 17, 2017 10:24 ET (14:24 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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