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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.

Chief designer Walter de Silva out at Volkswagen

After decades of penning beautiful machines, Volkswagen Group design boss Walter de Silva will retire at the end of November but will still hold an advisory role. He has led the styling for the automotive giant's brands since 2007. The company's statement didn't announce a successor for him. De Silva began his design career at Fiat in 1972 and led styling at Alfa Romeo from 1986 to 1998. He first joined VW Group with Seat but made a big splash at Audi in 2002. His work there included the sixth-generation A6, A5, and the fantastic R8. Later, he created a great take on the classic Leica M9 camera, too. VW praised de Silva's creation of a design culture that spanned its division but still allowed for creativity within each one. "Walter de Silva epitomizes creativity and the Italian sense of beauty and style on the one hand and thoroughness, a systematic approach and discipline on the other," CEO Matthias Muller said in the announcement. De Silva's retirement could bring a major change in the way VW Group organizes its studios, according to Automotive News. The automaker reportedly wants to cut its annual styling budget and might not seek a replacement for him. Walter Maria de Silva takes retirement Head of Group Design established common design culture across all brands while retaining creative autonomy of each individual brand Walter Maria de Silva Walter Maria de Silva Walter Maria de Silva (64), Head of Group Design, is retiring with effect from the end of November. De Silva assumed design responsibility for all passenger car brands within the Volkswagen Group in February 2007. Walter de Silva will continue his links with the Group in an advisory capacity. Walter Maria de Silva was born in Lecco (Italy) on February 27, 1951 and joined the Volkswagen Group 17 years ago when he became Head of the SEAT Design Centre in 1998. He was put in charge of the design of the Audi brand group, including the brands Audi, Lamborghini and SEAT, in 2002. His new design language with Audi was epitomised by the 6th generation of the Audi A6 and Audi A5 Coupe. He was appointed Head of Group Design at Volkswagen Aktiengesellschaft in 2007. Walter de Silva saw the main focus of his work as design chief in establishing and nurturing a common design culture across all brands, which nevertheless allows each brand to retain a high degree of creative autonomy.

VW CEO Winterkorn issues video apology for diesel scandal

Amid rumors that he might step down from the automaker, Volkswagen CEO Martin Winterkorn has issued a video statement publicly apologizing for the company's diesel emissions scandal. The boss claims that he doesn't have the answers to all of the questions yet but promises a thorough investigation to makes things right. Multiple times in the speech, he asks forgiveness from customers all over the world and asks people not to blame all of the company's 600,000 employees for this lapse. At no point does Winterkorn mention resigning, though. You can watch the whole clip above, but it's in German, so turn on the subtitles. However, Winterkorn's future with VW isn't assured, and works council boss Bernd Osterloh appears ready to make some changes. "I can assure you that we will do everything possible in the supervisory board meetings this week to ensure the matter is cleared up quickly and that personnel consequences are drawn. And that will not just affect the rank and file, I can assure you," he said in a letter to Bild, according to Reuters. Earlier today, the automaker admitted that the same engine management software is in vehicles from other VW group brands, but it claims that the Type EA 189 engine is the only one with a deviation between test results and real-world numbers. That mill is installed in 11 million vehicles across the globe. As a start, VW is earmarking 6.5 billion euros ($7.3 billion at current rates) to service them. The actual costs could go much higher, though.