In May, the US Department of Justice accused FCA of using software on some diesel models that led to excess emissions.
Talks have now begun between FCA and lawyers representing the owners of the affected vehicles, and between FCA and the Department of Justice.
A total of 104,000 cars are believed to be affected in the US, sold from 2014 onwards. The number of owners represented in the talks has not been disclosed.
Documents containing proposed settlements have been exchanged between the two parties, according to court settlement master Ken Feinberg. Parts supplier Bosch is also implicated in the lawsuits.
The settlement could be reached as early as March 2018, when testing on the vehicles is due to be completed. This testing will investigate the results of a fix proposed by FCA, with a review of the results expected to be disclosed by May.
Since the Volkswagen Dieselgate scandal first broke cover in late 2015, FCA has been mentioned frequently as having also used cheat devices. It was accused of having dodged the proper emissions tests in Italy, despite the company always maintaining that this wasn’t the case.
Autocar has approached an FCA spokesman for comment.