New civil suit facing Fiat Chrysler

The US Justice Department files a lawsuit accusing the Italian-American automaker of illegally using software to bypass emission controls in 104,000 diesel vehicles sold since 2014.

WASHINGTON (REUTERS) - Fiat Chrysler faces a new civil lawsuit in the US, for allegedly cheating emissions tests with illegal devices in more than 100,000 diesel vehicles since 2014. 

But unlike Volkswagen, Fiat Chrysler denies the claim. 

"It seems that the device did actually help the carmaker cheat the tests, what they're claiming is that was not the intention of it," said Craig Erlam, Oanda senior market analyst. 

The company faces several similar lawsuits in America, amid growing scrutiny of diesel vehicles around the world.

While Fiat Chrysler says it will vigorously defend itself against the allegation, some say it will ultimately pay the price. 

"It does seem there is going to be a very big cost associated with it because ultimately they are going to have to fix the devices and potentially replace some cars," said Erlam. 

Shares in the company have already taken a turn, falling 2 per cent, its drop making European auto stocks among the biggest fallers in the sector on Wednesday (May 24).