DaimlerChrysler reached a settlement with the Justice Department and Environmental Protection Agency involving an estimated $94 million in penalties and costs to repair defective anti-pollution equipment on 1.5 million Dodge and Jeep vehicles and settle charges the company failed to properly disclose the defects in violation of the Clean Air Act. An EPA investigation conducted with the California Air Resources Board found that a large percentage of catalytic converters on the vehicles were defective and that the engine diagnostic systems on some models failed to alert drivers to the problem. Under the settlement with the EPA and Justice Department, DaimlerChrysler agreed to extend the warranty on the catalytic converters, recall about 500,000 vehicles to fix a diagnostic system defect and check the catalytic converter, and improve procedures for reporting emission-control defects.