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EU starts legal action against Italy over Fiat Chrysler emissions

BRUSSELS/ROME - The European Commission launched legal action against Italy on Wednesday 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 Commission said Italy had failed to convince it that devices used to modulate emissions on Fiat Chrysler vehicles outside of narrow testing conditions were justified. "The Commission is now formally asking Italy to respond to its concerns that the manufacturer has not sufficiently justified the technical necessity – and thus the legality – of the defeat device used," the Commission said in a statement. Italy has two months to respond to the Commission's request and may be eventually taken to the European Court of Justice if the answer is found to be unconvincing. Italy had asked the European Union to postpone its plan to launch legal action against Rome over emissions at Fiat Chrysler, Transport Minister Graziano Delrio said. "Considering that after the end of the mediation process, we did not receive any request for further information ... we ask that you delay starting the infringement procedure while we await a letter asking for clarification on issues raised by your relevant offices," Delrio told EU Industry Commissioner Elzbieta Bienkowska, according to the ministry's statement. The European Commission has been mediating a dispute between Rome and Berlin after Germany accused Fiat Chrysler of using an illegal device in its Fiat 500X, Fiat Doblo and Jeep Renegade models. That mediation ended without fanfare in March. EU officials have become increasingly frustrated with what they see as governments colluding with the powerful car industry and the legal move is the biggest stick the European Commission has available to force nations to clamp down on diesel cars that spew out polluting nitrogen oxide (NOx). Delrio, however, said the material Italy had sent to the Commission during the mediation process showed that the vehicles' approval process was correctly performed. Under the current system, which the Commission is trying to overhaul, national regulators approve new cars and alone have the power to police manufacturers. But once a vehicle is approved in one country, it can be sold throughout the bloc. Last December, the Commission launched cases against five nations, including Germany, Britain and Spain, for failing to police the car industry adequately.

Fiat to list on New York Stock Exchange?

Citing the ever-nebulous "two sources close to Fiat," Reuters is reporting that the Italian automaker and owner of the Chrysler brand is likely to list itself on the New York Stock Exchange. The move could reportedly happen as soon as 2015, marking the end, at least in the minds of investors, of Fiat's 115-year base in Turin, Italy.
The Italian government is not likely to react favorably to Fiat's potential move from Italy to the United States, despite initially positive reactions to Fiat's landmark final purchase of Chrysler, the third-largest automaker in the US. Fiat spent $3.65 billion to buy out the 41.46-percent stake in Chrysler that had been owned by the United Auto Workers' VEBA trust fund.
With little sign of a swift European recovery, Fiat has little choice but to focus on markets outside its traditional home, and a listing in New York could potentially be a boon for investors. According to International Strategy and Investment analyst George Galliers, speaking to Reuters, "People [would be] more likely to think of the entity in the same context as they do Ford and GM" if it were listed on the NYSE.

Junkyard Gem: 1982 Chrysler LeBaron Convertible

Things looked very grim at Chrysler during the late 1970s, as Oil Crisis-shocked car shoppers avoided buying thirsty land yachts and ancient-technology compacts in droves. The Carter administration grudgingly bailed out the company with loan guarantees in 1979 (leaving "small enough to fail" American Motors to seek help from the French government) and Chrysler needed a huge sales hit in a big hurry. Under the leadership of Lee Iacocca (freshly canned by Henry Ford II), Chrysler developed the modern, front-wheel-drive K Cars and the company was saved. The very first K Cars hit the road for the 1981 model year, and I'm always on the lookout for those historic early Ks when I'm searching for interesting bits of automotive history in junkyards. The '81 and '82s have become nearly impossible to find, but this once-plush LeBaron convertible appeared in a Northern California yard last month. While a bafflingly complex family tree of K-derived vehicles grew up in Chrysler showrooms through 1995 (including the hot-selling Caravan/Voyager/Town and Country minivans), the only "true" US-market K-Cars are the Dodge Aries, Dodge 400/600 coupe, Plymouth Reliant and Chrysler LeBaron. 1982 was the first model year for the K LeBaron and this car was built in March of that year, so we're looking at one of the very early successors to the Dodge Diplomat-based LeBarons of the 1970s. Chrysler developed a homegrown 2.2-liter, overhead-cam straight-four engine that proved very successful, and a 94-horsepower version of that engine was the base powerplant for the 1982 LeBaron. This car appears to have just about every option available that year, so of course the original buyer went for the 2.6-liter Mitsubishi Astron straight-four. With hemispherical combustion chambers, the 2.6 could be called a Hemi (a few Ks even got "2.6 HEMI" badging); horsepower came to just 93 in 1982, but the 132 pound-feet of torque beat out the 117 lb-ft of the Chrysler 2.2 that year. Silver-faced gauges and complicated radio controls were all the rage during the Late Malaise Era, and this car has both. Note the Chronometer next to the HVAC controls, a digital design with green vacuum-fluorescent display lifted from the previous-generation rear-wheel-drive LeBaron. The non-cloth bits of the convertible-top mechanism look decent enough, so perhaps some junkyard-shopping LeBaron owner will rescue them.