Stellantis's Peugeot Faces Probe into Alleged Emissions Fraud

By Joshua Kirby

Stellantis NV said late Wednesday that its French subsidiary Peugeot is under examination by authorities on allegations of consumer fraud relating to emissions from some diesel vehicles.

The allegations relate to the sale of Euro 5 diesel vehicles between 2009 and 2015, Stellantis said. Two other subsidiaries, France's Citroen and Fiat Chrysler Automobiles Italy, have been summoned to appear before a court in Paris as part of the same investigation, the former on Thursday and the latter in July, the auto maker added.

Peugeot will pay bail of 10 million euros ($12.2 million) and provide a bank guarantee of EUR30 million for potential compensation, Stellantis said. Peugeot is also considering its defense options.

"The companies firmly believe that their emission-control systems met all applicable requirements at the relevant times and continue to do so and look forward to the opportunity to demonstrate that," said Stellantis, which was formed in January this year from a merger between Peugeot and FCA.

The move comes a day after fellow French auto maker Renault SA was hit with preliminary charges on similar allegations of emissions fraud.

French authorities in 2016 launched investigations into a number of car makers after Germany's Volkswagen AG admitted using devices to cheat on laboratory emissions tests.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

June 10, 2021 01:27 ET (05:27 GMT)

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