The EPA has filed a civil court case against FCA for Model Year 2014-16 diesel engines.  How does this affect SinterCast?

The EPA initially issued a Notice of Violation against FCA on 12 January 2017.  FCA immediately stated that there was no malfeasance and that it would defend the claims.  Since that time, FCA has worked with EPA and CARB to identify solutions.  In parallel, the production of the 3.0 litre V6 diesel engine for Jeep and Ram vehicles has been suspended.  On 19 May, FCA issued a press release to state that a technical resolution had been agreed and that it has applied to EPA and CARB for approval to begin selling Model Year 2017 vehicles with the 3.0 litre V6 diesel engine.  On 23 May, the EPA issued a press release stating that it will seek civil penalties for the Model Year 2014-16 engines that it claims to be noncompliant.  FCA has responded to the EPA court filing in a further 23 May press release stating it is “currently reviewing the complaint, but is disappointed that the DOJ-ENRD has chosen to file this lawsuit. The Company intends to defend itself vigorously, particularly against any claims that the Company engaged in any deliberate scheme to install defeat devices to cheat U.S. emissions tests”.

For SinterCast, these are two separate issues – the past and the future.  Regarding the past, the US courts will need to decide if a penalty will be levied against FCA for the model year 2014-16 engines, and if so, the amount of that penalty.  SinterCast is only an observer in this.  Regarding the future, the Model Year 2017 diesel vehicles are undergoing a separate approval process, where it has been stated that a technical solution has been agreed.  SinterCast can therefore expect an increase in the FCA 3.0 litre V6 diesel production, as Model Year 2017 Jeep and Ram diesel vehicles return to showrooms.