French investigators have sued Stellantis NV’s Peugeot subsidiary for allegedly defrauding consumers of diesel engines for spreading Crackdown against carmakers already arrested by Renault SA and Volkswagen AG.
Peugeot, which became part of Stellantis earlier this year when the PSA Group merged with Fiat Chrysler, is due to pay a € 10 million guarantee and a € 30 million bank guarantee on Wednesday. The company said it is in the process of evaluating its defense options and has also sued its Citroen and Fiat Chrysler subsidiaries in a Paris court.
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The disclosure is due to similar allegations following announcements made by VW and Renault this week. The French allegations stemmed from a judicial investigation opened in early 2017 that VW had resolved civil and civil grievances with the U.S. and used illegal devices to prevent emissions testing with diesel vehicles within days.
The allegations against Stellantis can be distracted from efforts by CEO Carlos Tavares to integrate into one of the world’s leading manufacturers of PSA and Fiat cars. Since the two merged in January, the semiconductor industry has had to deal with the supply crisis by hampering production in the industry.
In France, Investigating Magistrates can complain to companies or individuals when there are “serious or consistent” indications of involvement. They can then decide whether to refer the case to a trial, but they do not participate after that stage.
This story has been published without text changes from a wireless agency feed.
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