Csr And Ethical Errors : Violation Of The Clean Air Act ( Caa )

1301 Words Oct 7th, 2015 6 Pages
CSR and Ethical Errors:

Environmental: Violation of the Clean Air Act (CAA)

In the year 2005, The United States had filed a complaint against the DaimlerChrysler Corporation on behalf of the Environmental Protection Agency, stating that, Chrysler violated the Clean Air Act by failing to properly disclose defective catalytic converters on approximately 1.5 million Jeep and Dodge vehicles for model years 1996 through 2001.

The catalytic converters were considered defective because a fair chunk of them experienced mechanical erosion, this causes the catalyst substrate material to detach from the catalyst shell, causing it to rattle around inside the shell and break into pieces. When these pieces get blow out from the car’s tailpipe, it leaves behind an empty catalyst shell resulting in a gross emitting vehicle. Also, a good number of vehicles were found to have defective on-board diagnostics (OBD) systems that failed to detect the deteriorated or empty catalyst converters.

When an emission-related defect is found to affect 25 or more vehicles or engines of the same model year in newly manufactured motor vehicles, the manufacturer is required to file an emission defect information report with the United States Environmental Protection Agency not more than 15 working days after such emission-related defects are reported.

The company paid $90 million as settlement charges; the settlement involved extended warranties for the vehicles with defective catalytic converters and…

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