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FCA and Cummins named in diesel emissions class-action lawsuit

Chrysler is now the first United States-based carmaker to be sued for allegedly skewing emissions results. In a move that sounds eerily similar to the troubles of European manufacturers, Chrysler is claimed to have hid diesel engine characteristics causing emissions as much as 14 times higher than permitted by regulations. According to Bloomberg, the lawsuit alleges that Chrysler, together with its diesel engine partner Cummins, has concealed the nitrogen oxide output of certain Ram vehicles produced between 2007 and 2012. The NOx pollutants were meant to be broken down in a process called regeneration in the truck's NAC system, or NOx Absorption Catalyst, which predated the 2013-introduced SCR, or Selective Catalytic Reduction system. By design, the NAC captures and stores NOx emissions, converting them to nitrogen and oxygen through a catalytic process. The lawsuit claims the Cummins engine's system has a limited capacity to store the emissions, and as a result the pollutants escape, increasing emissions, worsening fuel consumption and wearing down the catalytic converter. The later, cleaner SCR system uses a urea-water injection, and it gradually replaced the NAC on Cummins 6.7-liter engines, as it was first implemented in 2011 and made standard in 2013. As Bloomberg notes, the model years of Ram trucks involved in the lawsuit predate the earliest Volkswagen "Dieselgate" models by two years. The lawsuit, filed on behalf of 500,000 truck owners, accuses Chrysler and Cummins of fraud, false advertising and racketeering. As an underlying motive, the filing mentions a 2001 change in EPA emissions standards. Announced to become effective in 2010, the EPA requirements drove Chrysler and Cummins to try and reach those already by 2007. However, the NAC system is said to have fallen short of these goals, and the filing claims that Chrysler and Cummins chose to "rig" the engines instead. The affected vehicles predate the 2014 merger of Chrysler and Fiat. FCA US has released a statement regarding the lawsuit, saying it will contest the lawsuit "vigorously". News Source: BloombergImage Credit: Getty Editorial Government/Legal Green Chrysler Dodge RAM Emissions Diesel Vehicles FCA cummins diesel

At meeting with automakers, Trump launches new attack on NAFTA

WASHINGTON — Ten American and foreign automakers went to the White House on Friday to push for a weakening of U.S. fuel efficiency standards through 2025, while President Donald Trump used the occasion to launch a fresh attack on the North American Free Trade Agreement that has benefited the companies. A draft proposal circulated by the U.S. Transportation Department would freeze fuel efficiency requirements at 2020 levels through 2026, rather than allowing them to increase as previously planned. Trump's administration is expected to formally unveil the proposal later this month or in June. "We're working on CAFE standards, environmental controls," Trump told reporters at the top of the meeting, referring to the Corporate Average Fuel Economy standards for cars and light trucks in the United States. Trump said he wants automakers to build more vehicles in the United States and export more vehicles. But much of the hour-long meeting focused on NAFTA. Trump blasted the pact involving the United States, Canada and Mexico as "terrible" and noted that negotiations to make changes sought by his administration were ongoing. "NAFTA has been a horrible, horrible disaster for this country and we'll see if we can make it reasonable," Trump said. Automakers have called NAFTA a success, allowing them to integrate production throughout North America and make production competitive with Asia and Europe, and have noted the increase in auto production over the past two decades with the deal in place. They have warned that changing NAFTA too much could prompt some companies to move production out of the United States. The chief executives of General Motors Co, Ford Motor Co, Fiat Chrysler, along with senior U.S. executives from Toyota Motor Corp, Volkswagen AG, Hyundai Motor Co, Nissan Motor Co, Honda Motor Co , BMW AG and Daimler AG met with Trump, as did the chief executives of two auto trade groups. Major automakers reiterated this week they do not support freezing fuel efficiency requirements but said they want new flexibility and rule changes to address lower gasoline prices and the shift in U.S. consumer preferences to bigger, less fuel-efficient vehicles.

Fiat Chrysler, Peugeot announce merger as world's No. 4 carmaker

MILAN  — Fiat Chrysler and France's PSA Peugeot said Thursday they have agreed to merge to create the world's fourth-largest automaker with enough scale to confront big shifts in the industry, including a race to develop electric cars and driverless technologies. Italian-American Fiat Chrysler brings with it a strong footprint in North America, where it makes at least two-thirds of its profits, while Peugeot is the No. 2 automaker in Europe. Both lag in China, however, despite the participation of Peugeot's Chinese shareholder, Dongfeng, and are playing catching up in developing electric vehicles. Fiat Chrysler shares were trading up 9% at 14 euros in Milan, while PSA Peugeot shares were down 3.2% to 22.84 euros. The 50-50 merger is expected to offer savings of 3.7 billion euros ($4 billion), which the automakers expect to achieve without any factory closures — a concern of unions in both France and Italy where the carmakers have more overlap. Fiat Chrysler's strongest brands are Jeep SUVs and Ram trucks and it is focusing on relaunching its premium and luxury brands, Alfa Romeo and Maserati, with a focus on hybrid engines. It still makes smaller cars under the Fiat marquee, mostly for the European and Latin American markets. PSA Peugeot makes mostly small, city-friendly cars, family sedans and SUVs under the nameplates of Peugeot, Citroen and Germany-based Opel, which it bought in 2017. That is where the companies can expect to have the most overlap. The new company would be worth $50 billion, with revenue of 170 billion euros ($189 billion). It would produce 8.7 million cars a year — still behind Toyota, Volkswagen and the Renault-Nissan alliance, which make over 10 million each. Once a merger is finalized, PSA Peugeot CEO Carlos Tavares will be chief executive of the new company, with Fiat Chrysler Chairman John Elkann becoming chairman. Fiat Chrysler CEO Mike Manley will have a senior executive role. "This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity," Tavares said in a statement. Manley called it "an industry-changing combination," and noted the long history of cooperation with Peugeot in industrial vehicles in Europe. The 11-member board will be made up of five members from each company plus Tavares, who is locked in as CEO for five years.