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Fiat Chrysler to pay $800M in Jeep, Ram emissions cheating case

WASHINGTON — Fiat Chrysler Automobiles NV has agreed to a settlement worth about $800 million to resolve claims from the U.S. Justice Department and state of California that it used illegal software that produced false results on diesel-emissions tests, but still faces an ongoing criminal probe. The hefty penalty is the latest fallout from the U.S. government's stepped-up enforcement of vehicle emissions rules after Volkswagen AG admitted in September 2015 to intentionally evading emissions rules. The Fiat Chrysler settlement includes $311 million in total civil penalties to U.S. and California regulators, up to $280 million to resolve claims from diesel owners, and extended warranties worth $105 million. It covers 104,000 Fiat Chrysler 2014-16 Ram 1500 and Jeep Grand Cherokee diesels, the Justice Department said. Regulators said Fiat Chrysler used "defeat devices" to cheat emissions tests in real-world driving. Fiat Chrysler said in a statement that "the settlements do not change the Company's position that it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests." The company did not admit liability. "You wouldn't pay $311 million total dollars to the federal government in civil penalties if there were not a serious problem," U.S. assistant attorney general Jeff Clark told a news conference. The settlement also includes $72.5 million for state civil penalties, and $33.5 million in payments to California to offset excess emissions and consumer claims. German auto supplier Robert Bosch GmbH, which provided the emissions control software for the vehicles, also agreed to pay $27.5 million to resolve claims from diesel owners. Owners will receive an average of $2,800 to obtain software updates as part of the emissions recall, Fiat Chrysler said. Elizabeth Cabraser, a lawyer for the owners, said the "substantial cash compensation" will ensure that consumers get the recall fix. Bosch, which also provided diesel emissions software to Volkswagen, also agreed to pay $103.5 million to settle claims with 47 U.S. states that said the supplier "enabled" the cheating and should have known its customers would use the software improperly, the New York Attorney General's Office said.

Marchionne offers belated apology for 'wop engine' comment

Automotive News reports Fiat-Chrysler CEO Sergio Marchionne has issued a written apology for his comments regarding his decision to stick with an Italian engine for the upcoming Alfa Romeo 4C. As you may recall, back in January, Marchionne was quoted as saying, "I cannot come up with a schlock product, I just won't. I won't put an American engine into that car. With all due respect to my American friends, it has to be a wop engine." The CEO penned an apology to the Italian American ONE VOICE Coalition for using the racial epithet, saying that he made the comment in jest. Marchionne also said he realizes his remarks were unacceptable.
ONE VOICE, an organization aimed at fighting discrimination and stereotyping of Italian Americans, thanked Marchionne, Chrysler and Fiat for the apology. Marchionne is an Italian-born Canadian citizen, and he's gotten in trouble for other comments in the past. In 2011, he called high interest rates Chrysler was paying to the Canadian government "shyster rates." He apologized a day later.

26k Chrysler 200 models recalled over parking woes

Chrysler is recalling nearly 26,000 of its 2015 200 sedans after customers reported that cars aren't shifting into park. Only vehicles equipped with the 3.6-liter V6 are affected by the recall, which includes both front-drive and all-wheel-drive models (which could represent as much as 20 percent of the recalled vehicles). The roughly 26,000 vehicles were built between March 17, 2014 and September 20, 2014. As for where those vehicles can be found, 22,107 were sold in the United States. The remaining vehicles went to Canada and Mexico, with 3,600 in the former and 213 in the latter. Chrysler is blaming the recall on "inconsistent assembly procedures" at a supplier's factory, and will replace the transmissions of any vehicles affected by the defect. Owners of V6-powered 200s are being told to use their parking brake in addition to shifting into park. Although five incidents have been reported, FCA isn't aware of any injuries or accidents. Scroll down for the brief press release. Statement: Park Engagement February 26, 2015 , Auburn Hills, Mich. - FCA US LLC is launching a recall of certain model-year 2015 cars to resolve manufacturing issues that may prevent the vehicles from shifting into park. Inconsistent assembly procedures at a supplier's plant have been linked to five reports involving customers who could not shift their vehicles into park. Without park, a vehicle may be subject to inadvertent movement. FCA US is unaware of any related injuries or accidents. The campaign is limited to the Chrysler 200 equipped with a V-6 engine. There are an estimated 22,107 in the U.S.; 3,600 in Canada and 213 in Mexico. Customers will be advised when they may schedule service. FCA US dealers will inspect and, if required, replace transmissions at no charge. In the interim, customers who own models with V-6 engines are advised to activate the vehicle's parking brake before shutting off its engine, because the shifter may incorrectly indicate park is engaged. Customers with additional concerns may call 1-800-853-1403. Related Video: