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US prepares to sue Fiat Chrysler over diesel emissions testing

NEW YORK - The Justice Department plans to file a civil lawsuit against Fiat Chrysler Automobiles NV over excess diesel emissions as early as this week if no agreement is reached with the Italian-American automaker, two sources briefed on the matter said on Wednesday. The Environmental Protection Agency in January accused FCA of illegally using undisclosed software to allow excess diesel emissions in about 104,000 cars and SUVs, the result of a probe that stemmed from regulators' investigation of rival Volkswagen AG. The EPA and California Air Resources Board have been in talks with FCA about the excess emissions and whether the agencies would approve the sale of 2017 FCA diesel models. A federal judge in California has set a May 24 hearing on a series of lawsuits filed by owners of vehicles against Fiat Chrysler and the Justice Department is expected to file its action by then if no agreement is reached. FCA said on Wednesday it believed that any litigation would be "counterproductive" to ongoing discussions with the EPA and California Air Resources Board. The company added that "in the case of any litigation, FCA US will defend itself vigorously, particularly against any claims that the company deliberately installed defeat devices to cheat U.S. emissions tests." The Justice Department took the same procedural step in early 2016 against Volkswagen, nearly four months after the German company admitted using software to emit excess diesel emissions in nearly 500,000 vehicles. The Justice Department has had an ongoing criminal investigation into FCA's conduct since last year, Reuters reported in January. The probe has turned up internal emails written in Italian and other documents about engine development and emissions issues, sources briefed on the probe said. U.S. regulators said FCA failed to disclose engine management software in 104,000 U.S. 2014-2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3.0-liter diesel engines. The European Commission has launched legal action against Italy for failing to respond to allegations of emission-test cheating by Fiat Chrysler in a procedure that could lead to the country being taken to court. The EPA has said the maximum possible fine against FCA could be $4.6 billion. In February, FCA said it had received requests for information and subpoenas from U.S. federal and state authorities, including the Securities and Exchange Commission, for diesel issues.

Stellantis moves to set up its own lending unit

Stellantis is buying Houston-based auto lender First Investors Financial Services Group to set up its own finance arm in the U.S., a move that should support sales and eventually boost profit. The only major traditional automaker in the U.S. without its own finance company agreed to pay $285 million to a group of investors led by Gallatin Point Capital and Jacobs Asset Management, according to a statement. The transaction is expected to close by year-end. Stellantis was formed via the merger between Fiat Chrysler and PSA Group early this year. Carlos Tavares, the PSA boss who became the combined company’s chief executive officer, called the deal to acquire First Investors a milestone that will increase earnings and enhance customer loyalty. “Direct ownership of a finance company in the U.S. is a white-space opportunity which will allow Stellantis to provide our customers and dealers a complete range of financing options,” Tavares said Wednesday in the statement.  Having an in-house finance company has helped rivals General Motors Co. and Ford Motor Co. pad profits, especially during the global semiconductor shortage that has limited production and crimped sales. GM bought subprime lender AmeriCredit Corp. in 2010 and renamed it GM Financial. The operation generated a $2.76 billion profit in the first half -- roughly a third of the companyÂ’s adjusted earnings before interest and taxes. Trouble for Santander? The First Investors acquisition could spell trouble for Chrysler Capital, the operation that Santander Consumer USA Holdings Inc. and Chrysler set up in 2013 before the U.S. automaker completed its merger with Fiat. In a statement, Santander Consumer said itÂ’s committed to supporting Stellantis through the term of their existing agreement and its transition. Santander Consumer will also have “ongoing conversations with Stellantis about long-term mutually beneficial opportunities beyond 2023,” the company said, adding that its consumer business remains strong and has “delivered solid results for our shareholders.” This, along with support from its parent company, will allow the lender to “pursue additional opportunities as they arise.” The lenderÂ’s U.S.-listed stock fell 1.5% in New York trading Wednesday after Bloomberg reported Stellantis was preparing to announce a new finance partner. Stellantis shares rose as much as 1.3% in Paris trading Thursday.

Toyota Sienna vs Chrysler Pacifica Hybrid | Minivan comparison test

Shopping for a new car can be difficult due to the sheer number of choices. Which brand do you start with, which do you skip and are you missing something worthwhile? Thankfully, minivans are much simpler. There are effectively only four choices, they're all pretty good and they're even different enough to make choosing the right one for you a bit easier. This comparison features the two most recently updated minivans: the Toyota Sienna versus the Chrysler Pacifica Hybrid. Besides their common newness, they stand out in another fundamental way: they're both hybrids. Now, they're very different hybrids – the Toyota comes standard with a traditional gasoline-electric system like that of a Prius, whereas the Pacifica is offered with an optional plug-in hybrid system that provides an estimated 32 miles of all-electric range before effectively turning into a traditional hybrid – but in both cases, fuel economy is the priority. With the rare exception, the minivan segment has exclusively used V6 engines, which provide sufficient power to move hefty loads of people and stuff. The Chrysler Pacifica comes standard with a V6, while a V6 is the sole powertrain option for the Honda Odyssey and new 2022 Kia Carnival. The fuel economy difference between those and our hybrid competitors is staggering: The new Sienna gets an EPA-estimated 36 mpg combined while the Odyssey and V6 Pacifica get 22 mpg. That equates to saving an estimated $750 every year on gas, according to the EPA. And the Pacifica Hybrid could potentially save you even more as long as you routinely utilize its electric range. This frugality alone could send the Sienna and Pacifica Hybrid to the top of many shopping lists, but as we've seen in previous tests, they offer more than enough in other respects to warrant top consideration. But which is better, Sienna or Pacifica? Well, we knew this was going to be close, and we were right. After averaging the scores from 16 categories, the difference between first and second was a mere 0.06 out of 10. When we added extra weight to key minivan-buying attributes (second-row space/versatility, safety features and functionality, infotainment, interior storage, cargo space/versatility, value and fuel economy), the gap was only 1 point out of a possible 230. We then triple checked and conducted a recount, but the order remained. In the end, there are no losers here.