THREE of Europe’s biggest car makers, Peugeot, Renault and Volkswagen, are being asked to stump up more than $300 million in funds following the laying of charges against the latter two and the start of an investigation against Peugeot into the on-going saga of alleged cheating by car makers on diesel emissions and fuel economy claims.

Both Renault and Volkswagen were charged in France with offenses on May 6 and now Stellantis has summons to court in France where allegations have been laid of consumer fraud in connection with the sale of Euro 5 diesel vehicles.

But what is attracting the attention of the car industry is the eye-watering amounts of money being asked by the courts to be set aside as guarantees to ensure that the parties will show up at court and to demonstrate they can also cover costs and penalties if they are found guilty.

The recently-formed supergroup, Stellantis, has been roped into the action against Peugeot and was officially placed under examination by the Judicial Court of Paris. The investigations into Peugeot commenced in 2016 and 2017.

The car manufacturing giant confirmed in a statement that it will have to pay bail of 10 million euros and a bank guarantee of €30m.

While Peugeot is the current target of the investigation – which relates to the stated performance claims made for diesel vehicles in France between 2009 and 2015 – Citroën and Fiat Chrysler Automobiles Italy have also been summoned to appear before the court as part of the same investigation.

A statement from Stellantis said that Peugeot was currently “in the process of assessing its defence options”.

The statement said: “This formal step in the judicial investigation will allow the investigated parties to have full access to the case file and give them the opportunity to defend against allegations that have not yet been evaluated in adversarial proceedings.

“The companies firmly believe that their emission control systems met all applicable requirements at the relevant times and continue to do so and look forward to the opportunity to demonstrate that.

“The Stellantis Group, which was established in January 2021, will continue its predecessors’ policies and cooperate fully with the justice system in order to resolve this matter expeditiously.”

In addition to Stellantis, Renault has been charged with deception in relation to an emissions probe which has been continuing since 2017.

Renault has been ordered to pay 20 million euros as bail and provide a bank guarantee of €60m to cover any compensation orders.

Volkswagen was also charged on May 6 and must pay 10 million euros as bail and provide a €60m guarantee to cover penalties and costs.

The diesel saga continues to sap the strength of car makers across the world. Volkswagen has been the hardest hit with penalties and compensations topping $A45 billion at this point.

By John Mellor