Fiat Chrysler Might Be Slapped With a Hefty Fine

Fiat Chrysler (FCAU) - Get Report could be slapped with a hefty fine. Despite that, Fiat Chrysler shares are bouncing back.

Shares rose after CEO Sergio Marchionne hit back at reports his company tried to cheat U.S. emission standards. Marchionne called the allegations "unadulterated hogwash." The company said it believes vehicles meet EPA standards.

"[Fiat] intends to work with the incoming administration to present its case and resolve this matter fairly and equitably and to assure the EPA and FCA U.S. customers that the company's diesel-powered vehicles meet all applicable regulatory requirements," the company said in a statement. If allegations are true, Fiat Chrysler could face costs of around $17,000 per vehicle (roughly $2 billion in total)