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Fiat Chrysler to pay $800M in Jeep, Ram emissions cheating case

WASHINGTON — Fiat Chrysler Automobiles NV has agreed to a settlement worth about $800 million to resolve claims from the U.S. Justice Department and state of California that it used illegal software that produced false results on diesel-emissions tests, but still faces an ongoing criminal probe. The hefty penalty is the latest fallout from the U.S. government's stepped-up enforcement of vehicle emissions rules after Volkswagen AG admitted in September 2015 to intentionally evading emissions rules. The Fiat Chrysler settlement includes $311 million in total civil penalties to U.S. and California regulators, up to $280 million to resolve claims from diesel owners, and extended warranties worth $105 million. It covers 104,000 Fiat Chrysler 2014-16 Ram 1500 and Jeep Grand Cherokee diesels, the Justice Department said. Regulators said Fiat Chrysler used "defeat devices" to cheat emissions tests in real-world driving. Fiat Chrysler said in a statement that "the settlements do not change the Company's position that it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests." The company did not admit liability. "You wouldn't pay $311 million total dollars to the federal government in civil penalties if there were not a serious problem," U.S. assistant attorney general Jeff Clark told a news conference. The settlement also includes $72.5 million for state civil penalties, and $33.5 million in payments to California to offset excess emissions and consumer claims. German auto supplier Robert Bosch GmbH, which provided the emissions control software for the vehicles, also agreed to pay $27.5 million to resolve claims from diesel owners. Owners will receive an average of $2,800 to obtain software updates as part of the emissions recall, Fiat Chrysler said. Elizabeth Cabraser, a lawyer for the owners, said the "substantial cash compensation" will ensure that consumers get the recall fix. Bosch, which also provided diesel emissions software to Volkswagen, also agreed to pay $103.5 million to settle claims with 47 U.S. states that said the supplier "enabled" the cheating and should have known its customers would use the software improperly, the New York Attorney General's Office said.

Fiat Chrysler's next-generation Uconnect is faster, built on Android

If you're a regular reader of Autoblog, you know that for a long time we've liked Fiat Chrysler's Uconnect infotainment system for its bright, clear, responsive touchscreen interface. Now, according to the company, it will be better than ever with Uconnect 5, the latest iteration of the system. It has upgraded hardware and a revamped graphic user interface (the stuff on the screen). Looking at sample screens shown above, there are characteristics shared with the old system, such as the time, status and shortcuts at the top and the menu icons at the bottom. In the middle, the major change is the addition of home screens that can be customized with favorite menus and readouts that are always available. Each of these home screens can have up to four functions and you can have five pages to flip through. The graphics themselves feature more legible fonts and updated icons. Each car brand will get its own set of icons, colors and textures to help create unique experiences. And while each Fiat Chrysler product will be able to have Uconnect, including Alfa Romeo that has until now lacked Uconnect, each brand has the ability to make small tweaks including the screen orientation. The system will support displays in landscape, portrait or square, so different brands may choose different shapes. Powering Uconnect 5 is a processor Fiat Chrysler says is six times more powerful than what's in current systems. It features 6 gigabytes of RAM and 64 gigabytes of internal storage. The processor also supports screens as large as 12.3 inches with as many as 15 million pixels, or nearly twice that of a 4K resolution TV. The system can display information on up to four screens, too. Uconnect 5's firmware is built on Google's Android operating system, joining a few other automakers in using Android as a base for their infotainment systems. Uconnect 5 brings with it a number of new features. It brings full Alexa integration, so you can use it just like you do at home, provided you have a data plan for the car. Apple CarPlay and Android Auto continue to be standard, but now they can be used wirelessly. You can also now connect two phones via Bluetooth wirelessly so you can access content from both. Navigation gets real time information and updates from TomTom. Users can create five profiles with unique climate, radio and instrument settings, plus one for a valet.

Fiat pondering swallowing rest of Chrysler, US IPO

At the moment, Fiat is in court with the United Auto Workers, waiting for the justice system to provide some guidance on a fair price for 41.5-percent of Chrysler it doesn't own. Fiat owns 58.5 percent of the company and wishes to buy the remainder, which is owned by the union's VEBA retiree trust, but the Italian company and the UAW are on different sides of the galaxy when it comes to assigning a fair price to that outstanding stake.
Naturally, Fiat CEO Sergio Marchionne is considering his options. A new report in the The Wall Street Journal says one of the scenarios being considered now is - depending on the outcome of the court case - to purchase the 41.5-percent stake and then issue an IPO to recoup some of the cost. About two months ago, Marchionne put the odds of an IPO for a wholly combined Fiat/Chrysler at 50 percent. Even with the WSJ report, it's not clear if those odds have changed.
The current company structure leaves a lot of options as to how a potential IPO could be issued, but it's said that Marchionne is against it, preferring "to be one company," under Fiat, indivisible. If Fiat is finally able to purchase all of the Pentastar, it would get access to Chrysler's war chest, pegged at $11.9 billion at the end of Q3 in 2012, and that money can't come soon enough for a brand taking a beating in Europe and delaying product over cash concerns.