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EU starts legal action against Italy over Fiat Chrysler emissions

BRUSSELS/ROME - The European Commission launched legal action against Italy on Wednesday 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 Commission said Italy had failed to convince it that devices used to modulate emissions on Fiat Chrysler vehicles outside of narrow testing conditions were justified. "The Commission is now formally asking Italy to respond to its concerns that the manufacturer has not sufficiently justified the technical necessity – and thus the legality – of the defeat device used," the Commission said in a statement. Italy has two months to respond to the Commission's request and may be eventually taken to the European Court of Justice if the answer is found to be unconvincing. Italy had asked the European Union to postpone its plan to launch legal action against Rome over emissions at Fiat Chrysler, Transport Minister Graziano Delrio said. "Considering that after the end of the mediation process, we did not receive any request for further information ... we ask that you delay starting the infringement procedure while we await a letter asking for clarification on issues raised by your relevant offices," Delrio told EU Industry Commissioner Elzbieta Bienkowska, according to the ministry's statement. The European Commission has been mediating a dispute between Rome and Berlin after Germany accused Fiat Chrysler of using an illegal device in its Fiat 500X, Fiat Doblo and Jeep Renegade models. That mediation ended without fanfare in March. EU officials have become increasingly frustrated with what they see as governments colluding with the powerful car industry and the legal move is the biggest stick the European Commission has available to force nations to clamp down on diesel cars that spew out polluting nitrogen oxide (NOx). Delrio, however, said the material Italy had sent to the Commission during the mediation process showed that the vehicles' approval process was correctly performed. Under the current system, which the Commission is trying to overhaul, national regulators approve new cars and alone have the power to police manufacturers. But once a vehicle is approved in one country, it can be sold throughout the bloc. Last December, the Commission launched cases against five nations, including Germany, Britain and Spain, for failing to police the car industry adequately.

NHTSA investigating Chrysler for airbags, ignition switches

Chrysler is being targeted by the National Highway Traffic Safety Administration in a pair of actions that focus on over 1.2 million Jeeps, minivans and crossovers.
The first is a "preliminary investigation" that focuses on an airbag issue afflicting the Jeep Commander built in model years 2006 and 2007 and Grand Cherokee from 2005 to 2006. In total, 700,000 vehicles could potentially be affected. It's not entirely clear what the airbag issue is, with The Detroit Free Press simply stating that the restraint systems in the affected Jeeps may be "faulty."
The other investigation is what's called a "recall query" and it covers a problem that General Motors should be familiar with. In this case, there could be a problem with the ignition switches of 525,000 vehicles, ranging from 2008 to 2010 Chrysler Town & Country and Dodge Grand Caravan minivans, to the 2008 to 2010 Dodge Journey crossover. Again, it's not entirely clear what sort of behavior prompted the 32 complaints that NHTSA has received on these vehicles.

Chrysler Q3 profits surge to $611M but per-unit profits trouble

Chrysler Group has announced its third-quarter financial results a little later than its crosstown rivals at General Motors and Ford, but the company has reason to celebrate thanks to strong numbers across the board.
The biggest attention-grabber from the automaker is that its net income was up 32 percent in the third quarter to $611 million, compared to $464 million over the same period last year. Modified operating profit was also strong at $946 million - a 10 percent gain. Furthermore, net revenue grew as well to $20.7 billion - 18 percent higher Q3 2013.
Growing sales pushed the strong financials. Chrysler Group sold about 711,000 vehicles worldwide for the quarter, up 18 percent from a year ago. Things looked especially good in the US, where its market share grew to 12.3 percent, versus 11.2 percent in Q3 2013.