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Feds sue Fiat Chrysler, accuse it of cheating on diesel emissions

WASHINGTON - The US government has filed a civil lawsuit accusing Fiat Chrysler Automobiles NV of using software to bypass emission controls in diesel vehicles. The Justice Department suit, filed in US district court in Detroit, is a procedural step that may ramp up pressure on Fiat Chrysler. The suit could ultimately help lead to a settlement, as in an earlier probe of rival Volkswagen AG that will cost VW up to $25 billion, but which affected a much larger number of vehicles. VW admitted to intentionally cheating while Fiat Chrysler denies wrongdoing. It did not immediately comment on Tuesday. US-listed Fiat Chrysler shares were down 2.9 percent at $10.44. The suit also names Fiat Chrysler's unit V.M. Motori SpA, which designed the engine in question. Reuters reported last week the Justice Department and EPA have obtained internal emails and other documents written in Italian that look at engine development and emissions issues that raise significant questions. The investigation has scrutinized VM Motori. FCA acquired a 50 percent stake in VM Motori in 2010 and the remainder in October 2013. The lawsuit asserts the Italian-American automaker placed undeclared "defeat devices," or auxiliary emissions controls, in 2014-2016 Fiat Chrysler diesel vehicles that led to "much higher" than allowable levels of nitrogen oxide, or NOx pollution, which is linked to smog formation and respiratory problems. The suit seeks injunctive relief and unspecified civil penalties. EPA said in January the maximum fine is about $4.6 billion. In January, EPA and California accused Fiat Chrysler of illegally using undisclosed software to allow excess diesel emissions in 104,000 U.S. 2014-2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks. Fiat Chrysler said on Friday it plans to update software that it expects will resolve the concerns of U.S. regulators about excess emissions in those vehicles. The January notice was the result of regulators' investigation of rival Volkswagen, which prompted the government to review emissions from all other passenger diesel vehicles. Volkswagen admitted in September 2015 to installing secret software allowing its cars to emit up to 40 times legal pollution levels. In total, VW has agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, states and dealers and offered to buy back about 500,000 polluting US vehicles.

Toyota, Ford not interested in FCA merger

Sergio Marchionne will preach the benefits of mergers to anyone who'll listen, but his calls for industry consolidation may be falling on deaf ears. At least, that is, the ears of those who the Fiat Chrysler chief would most like to bend. Not only is General Motors uninterested, but according to The Detroit News, neither are Toyota or Ford. "It's something we would not be interested in," said Toyota's North American chief Jim Lentz, at the groundbreaking ceremony for the new Toyota Technical Center. "At 10 million (vehicles) we have enough scale right now to do what we need to do. There really would be no advantage for us." Toyota isn't the only one unenthused by the prospect of merging with Fiat Chrysler Automobiles. The Detroit News also reports that Ford, though it may yet to have been approached by Marchionne, wouldn't be interested either. "We're not a suitor for FCA," said Ford CFO Bob Shanks. "We don't see that type of opportunity as one that applies to us." With GM, Toyota, and Ford expressing disinterest in Marchionne's merger idea, the FCA chief will likely start looking elsewhere – or look for other ways to compel his primary candidate to reconsider. He may eventually find a partner – more likely in the Far East or within Europe – but it may not take the form of the major player Sergio has hoped for. News Source: The Detroit NewsImage Credit: Bill Pugliano/Getty Chrysler Fiat Ford Toyota Sergio Marchionne FCA merger fiat chrysler automobiles

Fiat opens up vintage-style 1957 Edition to 500 Cabrio

If you liked the 1957 edition 500 that Fiat introduced over a year ago but really wanted the open-air flexibility of the 500C, we've got good news for you: The Italian automaker has extended the vintage-look edition to the convertible model. Celebrating "the spirit of the original 1957 Nuova 500," the 1957 Edition adopts a vintage look with retro 16-inch wheels with a wide chrome lip and body-colored hub along with throwback Fiat logos front and rear and a sport-tuned suspension. It's also got an ivory interior, brown leather seats with ivory stitching, grey door panels and more. And of course the convertible version comes with a canvas roof panel to let in the air and sunshine. The 1957 Edition will be offered in white, light green or baby blue. Pricing for the US starts at $24,700, representing a $1,900 premium over the Lounge trim on which it's based. FIAT INTRODUCES NEW FIAT 500 1957 EDITION CABRIO - FIAT brand builds on the success of the Fiat 500 1957 Edition with the addition of a cabrio version - 2015 Fiat 500c 1957 Edition offers vintage Italian styling with open-air driving excitement, starting at $24,700 U.S. MSRP - Limited-production model builds on the Fiat 500's storied past with unique exterior and interior design elements - Novel exterior appearance, three classic exterior colors, 1957-era body-color wheel design and vintage "FIAT" emblems pay homage to the historic Fiat Nuova 500 April 13, 2015 , Auburn Hills, Mich. - Just in time for the spring and summer top-down driving season, the FIAT brand today introduced the new Fiat 500 1957 Edition Cabrio. The FIAT brand continues to celebrate the storied past of the historic Nuova 500 with the addition of a cabrio version of the popular Fiat 500 1957 Edition, which was introduced in 2014. The Fiat 500c 1957 Edition features a premium dual-layer power-operated cloth top – a contemporary solution to the famous canvas roof on the original Cinquecento – designed to deliver all-season driving pleasure with the top up or down. "We continue to expand the FIAT lineup," said Jason Stoicevich, Head of FIAT Brand for North America. "The Fiat 500 1957 Edition celebrates the spirit of the original 1957 Nuova 500, and with the arrival of a cabrio version, we are adding open-air fun to the iconic Italian-designed Fiat 500 1957 Edition." Pricing for the well-equipped limited-production model starts at $24,700 U.S. MSRP, just $1,900 more than a base Fiat 500c Lounge.