Fiat Chrysler's Stock Plunges After EPA Issues Notice Of Violation

By Tomi Kilgore Markets MarketWatch Pulse

Shares of Fiat Chrysler Automobiles N.V. plunged 16% in morning trade Thursday prior to a trading halt, which put them on track for the biggest one-day selloff in six years, after the automaker said the U.S. Environment Protection Agency issued a notice of violation with respect to its emissions control technology. The company said it was "disappointed" that it was issued the notice, which covers technology employed in 3.0-liter diesel engines in the company's 2014 to 2016 model years. "FCA US looks forward to the opportunity to meet with the EPA's enforcement division and representatives of the new administration to demonstrate that FCA US's emissions control strategies are properly justified and thus are not 'defeat devices' under applicable regulations and to resolve this matter expeditiously," the company said in a statement. The stock was halted for news as of 11:04 a.m. ET. It was on track for the biggest decline since Jan. 3, 2011, when it plummeted 54%. Volume prior to the halt was 42.9 million shares, more than 4-times the full-day average. The stock has gained 14% over the past 12 months, while the S&P 500 has advanced 16%.

Continue Reading Below

Copyright © 2017 MarketWatch, Inc.