FCA believes it has a solution to ensure its diesel-powered Jeep Grand Cherokees and Ram trucks are compliant with emissions laws.

With federal regulators breathing down its corporate neck, Fiat Chrysler Automobiles says it has come up with a way to make more than 100,000 of its Jeep and Ram diesel models comply with federal emissions laws.

If the proposal is accepted by the Environmental Protection Agency and California Air Resources Board it might avoid a showdown that would see the automaker dragged into court, accused of using an illegal “defeat device” on those vehicles. That’s similar to the accusation leveled against Volkswagen, which ultimately acknowledged rigging both its 2.0- and 3.0-liter engine, used on about 550,000 vehicles sold in the U.S. and more than 11 million sold worldwide.

For its part, FCA has strongly denied cheating on emissions tests. “We’re trying to do an honest job here. We’re not trying to break the bloody law,” Marchionne told reporters during a media roundtable at the North American International Auto Show in Detroit in January.

It is unclear if the proposed software fix means it now is ready to reverse that position or is simply looking for a way to head off a court confrontation – and the possibility of more than $6 billion in fines for violating the U.S. Clean Air Act.

(U.S. ready to take on FCA over diesel rigging allegations. For the story, Click Here.)

“These actions should help facilitate a prompt resolution to ongoing discussions with the Environment and Natural Resources Division of the U.S. Department of Justice and other governmental agencies,” the automaker said.

The Ram 1500 EcoDiesel may be ready for a software tweak to make it compliant with emissions rules.

The government had last week let out word it would take FCA to court if the case dragged on. It appears to be giving the automaker an ear, however, noting in a statement that it “is continuing its discussions with FCA to fully address and resolve the issues.”

The EPA accused FCA of using the defeat device last January, just before the end of the Obama Administration. That was 16 months after the agency leveled charges against Volkswagen. The German automaker has since agreed to fines, penalties and other actions that will come to as much as $30 billion – about a third of that covering the cost of buying back most of the vehicles using the smaller engine. The EPA and CARB recently agreed to allow VW to resume selling some 2015 models that it can bring into compliance with emissions standards.

Among domestic automakers, FCA has been the most aggressive at returning to the diesel market the Detroit Big Three largely abandoned in the 1980s.

(Click Here to see details about France investigating FCA for diesel emission violations.)

The allegations cover about 104,000 2014-2016 model-year Jeep Grand Cherokees and Dodge Ram 1500 pickups.

Even with a software fix for the diesels, it is unclear whether the EPA and CARB will then let the issue wrap up – though under the Trump Administration some observers expect regulators to be less likely to pursue additional fines or the criminal penalties that VW faced.

FCA said it is already using the modified software on its 2017 diesel models. The maker says it remains committed to the technology, though some other manufacturers seem less sure. Mercedes-Benz has decided not to offer any diesels in the U.S. this year and is studying whether to return to the market in the future.

(Fiat Chrysler subpoenaed by feds of diesel emissions allegations. Click Here for the story.)

While some companies may pull out, others are entering the segment. Mazda, for one, is getting ready to introduce its first SkyActiv-D engine on the new CX-5 utility vehicle and Ford expects to add one to its F-150 pickup line.