Peugeot, Citroën Face Charges in French Emissions-Fraud Probe -- Update
June 10 2021 - 1:08PM
Dow Jones News
By Nick Kostov
PARIS -- Peugeot and Citroën have become the latest auto makers
to face preliminary charges in France on suspicion of emissions
fraud, extending the fallout from a yearslong scandal that engulfed
the auto industry after Volkswagen AG admitted to cheating in
pollution tests.
Stellantis NV, the auto giant that owns the French brands, said
the judicial court of Paris had ordered both car makers to pay bail
and provide bank guarantees to cover potential damages. The probe
relates to the sale of diesel vehicles in France between 2009 and
2015.
Stellantis said another of its subsidiaries, Fiat Chrysler, had
been summoned to appear before a court in Paris in the coming weeks
as part of the same investigation.
All three auto makers "firmly believe that their emission
control systems met all applicable requirements at the relevant
times and continue to do so," Stellantis said.
On Thursday, a French judicial official confirmed the filing of
preliminary charges against Peugeot, which allege the company
engaged in fraudulent practices that made its diesel-powered
vehicles "dangerous to human and animal health." The official
didn't immediately respond to a request for comment later in the
day on Citroën.
After years of investigations and fines, the latest charges show
that the emissions-cheating scandal continues to ripple across the
industry. Earlier this week, French prosecutors filed similar
charges against Renault and VW. Both auto makers denied
wrongdoing.
Bringing preliminary charges in the French judicial system is a
pivotal step that means prosecutors have enough evidence to deepen
an investigation; a judge can then either order the company to
stand trial or dismiss the charges.
The step also provides the defense with access to the case file,
which Stellantis said would give its subsidiaries the opportunity
to defend themselves.
France's antifraud authority began probing a number of car
makers in 2016 after Volkswagen admitted using defeat devices to
dupe laboratory emissions tests in the U.S. the year before.
At the time, officers from the antifraud office, known by its
acronym DGCCRF, raided four sites belonging to PSA Group, the
parent company of Peugeot and Citroën at the time, as well as one
in Montbéliard, the historic home of the brand in eastern France.
Renault sites were also raided.
Stellantis, which was formed earlier this year after a merger
between Fiat Chrysler and the Peugeot-owner PSA Group, said it
would cooperate fully with the probe to resolve the matter
expeditiously.
Peugeot has been ordered to pay a bail of EUR10 million,
equivalent to $12 million, and provide a bank guarantee of EUR30
million to cover potential damages. Citroën has to pay a bail of
EUR8 million and a bank guarantee of EUR25 million.
Last fall, VW wrapped up a yearslong compliance-monitoring
program required by U.S. regulators. The German car maker has
lately been making a push into electric vehicles.
Write to Nick Kostov at Nick.Kostov@wsj.com
(END) Dow Jones Newswires
June 10, 2021 14:08 ET (18:08 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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