Fiat Chrysler has been allegedly violated the Clean Air Act by neglecting to reveal its engine-management software that allows to excess diesel emissions. As the allegations go on, the shares of Fiat Chrysler have been fallen to 12.1 percent on the New York Stock Exchange. However, Moody's Investors Service said that the fallout is probably not going to be as damaging to Fiat Chrysler as Volkswagen AG's emission scandal.

According to Reuters, Italy's transport ministry made a statement that the tests had been conducted on Fiat Chrysler vehicles which indicate that they are compliant with the regulations and contains no emissions defeat gadgets as alleged by Germany. With the German Transport Minister Alexander Dobrindt said that Fiat Chrysler will be taken off the roads as it breaks emissions rules, but because of that statement the pressures have ascended amongst Rome and Berlin over the issue.

A year ago, Germany raised their worries over a certain Flat Chrysler models, including the Fiat 500X, Fiat Doblo, and Jeep Renegade that has been alleged about hidden software that permits excessive emissions by their diesel engines. However, Fiat Chrysler denied its allegations, until the issue re-emerged to the U.S. Environmental Protection Agency and accused Fiat Chrysler of controlling emissions tests in its Jeep Grand Cherokee sport-utility vehicles and Ram 1500 pick-up trucks.

Fortune stated that after Italy rejected Germany's assertions a year ago, Berlin requested that the European Commission negotiate in the conflict. Italy's transport ministry said that it did the essential checks and sent an accurate answer to the German authorities which demonstrates that the Fiat 500X, rather than what is guaranteed by Germany, is in consistency with its regulations. It is also included that the European Commission did not seem to have conducted any tests of its own that would affirm the German assertions.

A week ago, the European Commission approached Italy to give confirmation against Germany's assertions. However, Rome rejected the Commission's allegations that are kept on dragging its feet in the case, as it always acknowledges to demands from Brussels in a reliable way. Under an emission testing administration which the Commission is currently looking to modernize, though the national watchdogs affirm new autos and have the selective energy to police manufacturers- however once endorsed in one nation, vehicles can be sold over the alliance.