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The EPA has alleged that FCA installed undisclosed emissions software in about 100k Ram and Jeep diesel models [UPDATE]

Update: The text has been updated with official information from the EPA given in a press release and a conference call. Although an initial report from Reuters said the EPA will accuse Ram and Jeep of using emissions defeat devices today, that isn't quite the case. In a press release and a conference call, the EPA stated that the notice of violation sent to FCA is for the installation of eight undisclosed auxiliary emissions control devices on 2014 to 2016 Jeep Grand Cherokee and Ram 1500 models with the 3.0-liter turbodiesel V6. The violation applies to about 104,000 vehicles in total. The agency also explained that auxiliary emissions controls on vehicles are not necessarily illegal, but installing them without disclosing them to the EPA when having the vehicle certified is. Though this initial notice of violation is for installing undisclosed software, the EPA may soon also classify these emissions devices as defeat devices, as it did with the software Volkswagen used. Depending on the outcome of the investigation, there could be fines of up nearly $45,000 per vehicle involved in the notice of violation. The agency revealed that the software alters how the emissions system performs in certain situations. In controlled testing, the vehicles are compliant, but in conditions such as high speed operation, the EPA found the vehicles would produce much higher levels of NOx emissions. The EPA is continuing to investigate, and is waiting for FCA to explain why these emissions control devices are not cheating or defeat devices. In an official statement, FCA stated it is looking forward to explaining that the software does not constitute a defeat device, and has also proposed software updates to achieve compliance. During the conference call, EPA representatives also noted that the vehicles are still safe and legal to be driven, and that owners do not need to take any action yet regarding their cars. It should be noted there is no stop-sale on current models at this time. Additionally, 2017 versions of the 3.0-liter diesel FCA vehicles have not been emissions certified yet. Related Video: News Source: Reuters, Environmental Protection Agency Government/Legal RAM

FCA and UAW deal could mean huge production shakeups

The big labor contract between Fiat Chrysler Automobiles and the United Auto Workers is likely to lead to some very serious production shakeups across the company's North American manufacturing operations. That's according to a new report from Automotive News, which details the sweeping changes at no fewer than five production facilities in Michigan, Illinois, Ohio, Mexico, and Poland. So without further ado, here's what's going where, presented in easy to digest bullet form. Ram 1500 production would move from Warren, MI to Sterling Heights, MI Warren, MI would be retooled for unibody production and would handle the Jeep Grand Wagoneer and could potentially build Grand Cherokees to ease the strain on Detroit's Jefferson North factory Chrysler 200 production would move from Sterling Heights, MI to Toluca, Mexico Dodge Dart production would move from Belvidere, IL to Toluca, Mexic Fiat 500 production, which is currently handled by Toluca, would be concentrated in Poland, where the Euro-spec Cinquecento is built Jeep Cherokee production would move from Toledo, OH to Belvidere, IL to make room for Wrangler and Wrangler Pickup production Like we said, those are some big changes. But, as FCA CEO Sergio Marchionne said in an earlier interview with Automotive News, this kind of shakeup would make a lot of sense. In that August interview the exec said that automakers moved truck production to Mexico because they were "threatened" by the UAW. "The only thing [the UAW] want is to move the truck back. Which is right. If you move the truck back here, which is [the UAW's] domain, [and move] all the cars that we get killed on somewhere else, we could actually make sense of this bloody industry and actually increase the number of people employed in this country and really share wealth because we are making money," Marchionne told AN. News Source: Automotive News - sub. req.Image Credit: Bill Pugliano / Getty Images Plants/Manufacturing UAW/Unions Chrysler Dodge Fiat Jeep RAM Sergio Marchionne FCA toluca warren sterling heights

Stellantis expects strike to cost it $795 million in third-quarter profits

MILAN — Automaker Stellantis said Tuesday that the autoworkers strike in North America is expected to cost the company around 750 million euros ($795 million) in profits — less than its North American competitors. The Europe-based maker of Jeep, Fiat and Peugeot reported a 7% boost in net revenues to 45.1 billion euros, with production halts caused by the strikes costing the company 3 billion euros in sales through October. The net revenue boost was due to higher volumes in all markets except Asia. Chief Financial Officer Natalie Knight told journalists that StellantisÂ’ strike impact was lower than the other Big Three automakers due to its global profile as well as some high-profile cost-cutting measures, calculating the hit at around 750 million euros ($795 million.) GM, the last carmaker to reach a deal to end the strike, reported an $800 million strike hit. Ford has put its impact at $1.3 billion. “We continue to be in a very strong position globally and in the U.S. This is an important market for us, and weÂ’re highly profitable and we are very committed to our future," Knight said. “But mitigation is core to how we act, and how we proceed.” Stellantis has canceled appearances at the CES technology show in Las Vegas next year as well as the LA Auto Show, due to the strike impact. Stellantis on Saturday reached a tentative agreement with the United Auto Workers Union to end a six-week strike by more than 14,000 workers at its assembly plants in Michigan and Ohio, and at parts warehouses across the nation. Stellantis does not report full earnings for the third quarter, instead providing shipments and revenues. It said that global sales of electric vehicles rose by 37% over a year earlier, powered by the Jeep Avenger and commercial vehicle sales. North America continued to be the revenue leader, contributing 21.5 billion euros, an increase of 2% over last year, and representing nearly half of global revenues. Europe, the next biggest performing region, saw revenues grow 5% to 14 billion euros, as sales rose 11%. Related video: Earnings/Financials UAW/Unions Alfa Romeo Chrysler Dodge Fiat Jeep Maserati RAM