2009 Chrysler Sebring Touring on 2040-cars

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Stellantis dealers plead that letting Chrysler die is not an option

Executives and dealers have recently cautioned that a dark cloud looms over Chrysler's horizon, and figuring out why doesn't require an MBA from Stanford. And yet, Stellantis dealers say bright days could be ahead, if only the company reinvigorates the Detroit-based brand with long-awaited and much-needed new products. "This whole thing started with Chrysler. I don't want to get emotional about a brand, that's not the case. But, I don't want to see a brand like that left at the sideline and just thrown out to pasture," said David Kelleher, the head of the Stellantis National Dealer Council, in an interview with industry trade journal Automotive News. Kelleher added he would feel "violated" if the 96-year-old carmaker shut down. Keeping it around is relatively easy, but transforming it into a thriving business is far more difficult. Years of underinvestment have crippled the brand. It's almost exclusively dependent on North America, where it sells two models: the 300 and the Pacifica/Voyager duo. Sales in the United States totaled 110,464 units in 2020, down from 126,971 in 2019. To add perspective, Ram, Jeep, and Dodge sold 624,642, 795,313 and 267,328 units, respectively, in 2020.  While enthusiasts and analysts understandably worried Chrysler would die under Stellantis, Kelleher opined that the merger between Fiat Chrysler Automobiles (FCA) and PSA Group can make the brand stronger. Products and technology from the French side of the partnership can be leveraged to help Chrysler expand its range and increase its sales while keeping development costs in check, he said. He stopped short of revealing which vehicles he has in mind, but his comments are interesting because PSA's lineup is almost entirely made of up small, European-flavored cars that are diametrically opposed to the models Chrysler's reputation is built on.  Hatchbacks are dropping like flies in the American market, so putting a Chrysler badge on, say, a Peugeot 208 and bringing it to America is out of the question. Wagons are unpopular, too, which leaves crossovers and SUVs. Oddly, the Chrysler brand is not represented in one of the most popular market segments in the United States. PSA doesn't dabble in burly SUVs, like the Jeep Grand Cherokee, but it does small crossovers reasonably well. Could Chrysler move into the space occupied by the Toyota C-HR and the Hyundai Kona, among others?

Germany threatens to ban FCA vehicles over diesel emissions dispute

Germany is threatening to ban sales of FCA products over diesel emissions. According to the newspaper Bild Am Sonntag, Germany's Federal Motor Transport Authority found evidence of a so-called defeat device that shuts down certain emissions controls after running for 22 minutes. A standard diesel emissions test in the European Union reportedly takes 20 minutes to complete. FCA denies the allegations. "We believe all our vehicles respect EU emissions standards and we believe Italian regulators are the competent authority to evaluate this," the company said in a statement. The latter part of that statement drew ire from German authorities, especially after FCA declined to meet with German transport minister Alexander Dobrindt to discuss the issue. Graziano Delrio, the Italian Minister of Infrastructure and Transport, vowed to work with German authorities on behalf of FCA. According to EU law, FCA is required to homologate its vehicles in Italy because that's where its regional operations are based. When will the diesel-scented soap opera end? We wish we knew, but our Magic 8 Ball is covered in soot. Related Video: News Source: Financial TimesImage Credit: Giuseppe Aresu/Bloomberg via Getty Government/Legal Green Chrysler Dodge Fiat Jeep RAM Emissions Diesel Vehicles FCA

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.