Fiat Chrysler's Italian shares regained some of their value after they plunged following pollution accusations, Renault faces French probe.
Fiat Chrysler’s shares regained some of their value in Milan, but not in New York, on Friday after the plunge that followed pollution accusations from the US government.
The Environmental Protection Agency said it had illegally using hidden software to allow excess diesel emissions to go undetected.
Fiat Chrysler denies any wrongdoing.
Chief Executive Sergio Marchionne stressed this cannot be compared with VW’s cheating of diesel emissions tests.
Michelle Krebs, Senior Analyst with Autotrader, agrees: “It’s not identical to the Volkswagen situation, or at least it isn’t yet. It’s an inconclusive situation. There’s still work going on. In the case of Volkswagen, it was deliberate cheating. They knew they were doing this. It’s not clear at all that that’s the situation here.”
On Friday, Bloomberg reported it is now under investigation by the US Justice Department.
At the same time we learned that French carmaker Renault is being investigated by the Paris prosecutor’s office over suspected cheating on vehicle exhaust emissions.
That follows concerns raised last year by the French consumer protection agency.
Renault said it respected all laws on emissions and its vehicles do not have software that would allow it to commit that kind of fraud.
Its shares slipped four percent at one stage on Friday before recovering some ground.