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US prepares to sue Fiat Chrysler over diesel emissions testing

NEW YORK - The Justice Department plans to file a civil lawsuit against Fiat Chrysler Automobiles NV over excess diesel emissions as early as this week if no agreement is reached with the Italian-American automaker, two sources briefed on the matter said on Wednesday. The Environmental Protection Agency in January accused FCA of illegally using undisclosed software to allow excess diesel emissions in about 104,000 cars and SUVs, the result of a probe that stemmed from regulators' investigation of rival Volkswagen AG. The EPA and California Air Resources Board have been in talks with FCA about the excess emissions and whether the agencies would approve the sale of 2017 FCA diesel models. A federal judge in California has set a May 24 hearing on a series of lawsuits filed by owners of vehicles against Fiat Chrysler and the Justice Department is expected to file its action by then if no agreement is reached. FCA said on Wednesday it believed that any litigation would be "counterproductive" to ongoing discussions with the EPA and California Air Resources Board. The company added that "in the case of any litigation, FCA US will defend itself vigorously, particularly against any claims that the company deliberately installed defeat devices to cheat U.S. emissions tests." The Justice Department took the same procedural step in early 2016 against Volkswagen, nearly four months after the German company admitted using software to emit excess diesel emissions in nearly 500,000 vehicles. The Justice Department has had an ongoing criminal investigation into FCA's conduct since last year, Reuters reported in January. The probe has turned up internal emails written in Italian and other documents about engine development and emissions issues, sources briefed on the probe said. U.S. regulators said FCA failed to disclose engine management software in 104,000 U.S. 2014-2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3.0-liter diesel engines. The European Commission has launched legal action against Italy 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 EPA has said the maximum possible fine against FCA could be $4.6 billion. In February, FCA said it had received requests for information and subpoenas from U.S. federal and state authorities, including the Securities and Exchange Commission, for diesel issues.

VW and Audi recall Tiguan and Q5 to replace Takata inflators

The Basics: Volkswagen and Audi will recall 734 examples of the 2015 Tiguan with production dates between January 15, 2015, and January 21, 2015, and the 2015 Q5 built between January 13, 2015, and February 3, 2015. The Problem: The vehicles have driver and passenger seat side airbag inflators from Takata that could rupture in a crash. Injuries/Deaths: A side airbag ruptured in a 2015 Tiguan in June 2015, and the driver sustained slight injuries under the left arm. The person didn't need to seek medical attention, Audi spokesperson Mark Clothier told Autoblog. This is the only reported injury. The Fix: VW and Audi dealers will replace the side airbag modules. If You Own One: VW and Audi will advise owners about the recall but don't yet know specifically when repairs begin. RECALL Subject : Seat-Mounted Air Bag Inflators May Rupture Report Receipt Date: JAN 28, 2016 NHTSA Campaign Number: 16V045000 Component(s): AIR BAGS Potential Number of Units Affected: 734 All Products Associated with this Recall Vehicle Make Model Model Year(s) AUDI Q5 2015 VOLKSWAGEN TIGUAN 2015 Details Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2015 Volkswagen Tiguan vehicles manufactured January 15, 2015, to January 21, 2015, and 2015 Audi Q5 vehicles manufactured January 13, 2015, to February 3, 2015. The affected vehicles are equipped with driver and front seat passenger seat-mounted air bag inflators that may rupture in the event of a crash. CONSEQUENCE: In the event of a crash necessitating deployment of a seat-mounted air bag, the inflator could rupture with metal fragments striking the driver or other occupants resulting in serious injury or death. REMEDY: Volkswagen will notify owners, and dealers will replace the side air bag modules, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Audi customer service at 1-800-822-2834 or Volkswagen customer service at 1-800-893-5298. Volkswagen's number for this recall is 69M1 (for Audi) and 69L9 (for VW). NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov. Related Video:

Volkswagen drops "GTi" lawsuit against Suzuki

Way back in 2004, Volkswagen took umbrage with Suzuki being granted permission to use the nameplate "SWIFT GTi" for a performance variant of its small-car offering (2012 equivalent seen here). Now, eight years and surely some very steep legal bills later, VW has finally dropped its claim against Suzuki.
The General Court of the European Union stated, back in March of this year, that Suzuki's GTi registration could not be confused with VW's "Golf GTI." Volkswagen had appealed that ruling, though has now reportedly called off the dogs. In fact, Germany's Die Welt reports that the appeal has been dead for several weeks now.
This news comes amongst continued arbitration acrimony between the two automakers, all revolving around VW's forced divestiture of nearly 20-percent stake it purchased in Suzuki some two years ago.