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DaimlerChrysler settled with the Feds and CARB in two separate cases involving the same problem i.e. the emissions systems on some Chrysler Division vehicles don't work right, namely 1996 Jeep Cherokees and Grand Cherokees with 4.0L engines, 1997 Cherokees and Dodge Dakotas with 2.5s and 1997 Jeep Wranglers with 2.5-litre engines built after July 1996. Also covered are 1998 Wranglers, Cherokees and Dakotas with the 2.5L mill: 1.5 million vehicles, in all.

They're paying out a cool mil to CARB, extending the emissions system's warranty on the affected vehicles, giving the Federal Gov't $1.5 million, and will spend at least three million to reduce the environmental impact from diesels currently on the road. The whole thing is expected to cost the company $90 million. Ouch. That's where a lack of quality-control comes back to bite you in the ass, kids, and even sources inside Chrysler have admitted to us that the late '90s were a time when Chrysler was suffering from quality issues.

DCX settles emission charges [Detroit News]

Related:
Mercedes-Benz Recalls Most Cars in Germany in '05 [Internal]