Fiat Chrysler hit by test cheat allegation

Fiat Chrysler Automobiles NV was accused of violating pollution laws with 104,000 diesel vehicles, sending its shares plunging on the prospect the automaker may follow Volkswagen AG in facing billions of dollars in fines.

The United States Environmental Protection Agency alleged Fiat Chrysler put software in Jeep Grand Cherokee and Ram 1500 models that allows them to exceed pollution limits. The EPA stopped short of calling the software a "defeat device" but said the carmaker failed to disclose their use. Fiat Chrysler said it meets all applicable regulatory requirements and will work with President-elect Donald Trump's administration to contest the allegations.

Fiat Chrysler becomes the second automaker in less than three years the EPA has accused of violating the law by using software to pass laboratory emissions tests. Volkswagen, which admitted to using defeat devices in September 2015, agreed on Wednesday to pay a $4.3 billion fine, boosting the cost of the scandal to about 20.5 billion euros ($21.9 billion).