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Fiat Chrysler faces $79 million U.S. penalty for fuel economy shortfall

WASHINGTON — Fiat Chrysler Automobiles NV on Wednesday said it faces a $79 million U.S. civil penalty for failing to meet 2017 fuel economy requirements, as regulators reported more automakers were falling short of U.S. greenhouse gas emissions standards. The Italian-American automaker said the payment is not expected to have a material impact on its business. Of 18 major carmakers in the United States, 13 including Fiat Chrysler failed to comply with fuel economy and greenhouse gas emissions standards for the 2017 model year without using credits, according to the National Highway Traffic Safety Administration (NHTSA). The agency said its review of model year 2017 vehicles showed "automakers falling further behind current standards." The 2017 model fleet fell 1 1/2 miles per gallon short of the 33.8 mpg standard based on yearly performance without including credits, NHTSA reported. The shortfall was a half-mile per gallon for the 2016 model year. NHTSA said more automakers were failing to comply with standards for the 2018 and 2019 model years, "and the potential penalties on automakers, which are passed along to consumers, are expected to continue to increase." The Trump administration has used the widening gap between the emissions of automakers' U.S. fleets, which are skewing toward larger vehicles, and national vehicle CO2 emissions standards to bolster its case for freezing vehicle emissions and mileage standards at current levels through 2026. Environmental groups and regulators in California and other states are fighting against any rollback in standards, saying tough rules are needed to address climate change and reduce consumer outlays for fuel. NHTSA and the Environmental Protection Agency are working to finalize as early as next month a rewrite of the Obama administrationÂ’s fuel efficiency requirements, which call for sharp reductions in fleet-wide emissions by 2026. Fiat Chrysler is paying fines for the shortfall in its domestic passenger car fleet, which includes several front-wheel-drive Jeep and rear-drive Dodge SUVs and some sedans and muscle cars. The automaker killed its slow-selling domestic small and midsize sedans. After paying $77.3 million last year for a 2016 model year fuel-economy shortfall, a Fiat Chrysler spokesman confirmed Wednesday the company had received a letter on the 2017 penalty and has 60 days to pay the fine.

Ram midsize pickup will be body-on-frame, built alongside Jeep Scrambler

Ram's still far-off midsize pickup is shaping up to be a rugged body-on-frame pickup if this report from Automotive News is correct. We would assume that because its supplier sources claim the smaller Ram will be built at the same Toledo plant as the current JL Wrangler and upcoming Wrangler pickup, aka Scrambler. It's already been a long road of back and forth about whether or not Ram would build the small pickup. Mike Manley, now the CEO of FCA following Sergio Marchionne's passing, confirmed the brand's intentions of bringing a midsize truck to market when explaining the company's five-year plan a few months back. At the time, rumors pointed to a unibody construction with production taking place in Mexico. The possibility of Ram bringing a version of the 1200 pickup here has been tossed around, but we doubt Ram would come to market with a rebadged Mitsubishi against the developing stiff competition. That segment is quickly becoming crowded with the impending arrival of the Ford Ranger and the already successful Colorado/ Canyon twins and venerable Toyota Tacoma. Ram could try using the Dakota name to jumpstart sales, but it looks like it'll be last to the party in this midsize truck renaissance. Its Jeep cousin is expected to be revealed later this year and on the market in 2019, and we've already seen a lot of it in spy shots, and even on the Rubicon Trail. The report predicts we'll see a midsize Ram as a 2021 model, going on sale sometime in 2020. However, back in June this year, FCA's presentation pegged the smaller Ram's arrival for 2022. It's a long ways out either way, so we'll keep you up to date as the small Ram saga continues. Related Video:

Fiat Chrysler will invest up to $1.5 billion to build EVs in Windsor

Fiat Chrysler Automobiles will invest between $1.35 billion and $1.5 billion in its Windsor assembly plant in Canada to build electric vehicles as part of a tentative deal with Canadian autoworkers, Unifor National President Jerry Dias said on Thursday. The auto union said FCA would invest in a state-of-the-art vehicle platform that will enable the assembly of plug-in hybrid and battery electric vehicles, with at least one new model in 2025. The announcement comes less than a month after Unifor said Ford would invest $1.46 billion in its Oakville and Windsor plants. "Not only is Fiat-Chrysler maintaining the current portfolio but they will be investing three derivatives to enhance the current portfolio," Dias said. Unifor also said it expects to extend the life of the Chrysler 300, a rear-wheel-drive luxury car and introduce multiple derivatives of the Dodge Charger and Challenger. The union said as many as 2,000 jobs would be added in 2024 at the Windsor plant. Market forecasting firm LMC Automotive on Thursday said it would take until 2024 for U.S. vehicle sales to recover from the coronavirus downturn and get close to the 17 million vehicles sold in 2019. Ratification meetings for the FCA deal will happen over the weekend, and members will vote on whether to accept the agreement on Sunday. The union is expected to begin negotiations with General Motors's Canadian unit next week. Related Video: Green Hirings/Firings/Layoffs Plants/Manufacturing UAW/Unions Chrysler Dodge Fiat Jeep RAM Coupe Electric Sedan windsor