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Fiat Chrysler faces $79 million U.S. penalty for fuel economy shortfall

WASHINGTON — Fiat Chrysler Automobiles NV on Wednesday said it faces a $79 million U.S. civil penalty for failing to meet 2017 fuel economy requirements, as regulators reported more automakers were falling short of U.S. greenhouse gas emissions standards. The Italian-American automaker said the payment is not expected to have a material impact on its business. Of 18 major carmakers in the United States, 13 including Fiat Chrysler failed to comply with fuel economy and greenhouse gas emissions standards for the 2017 model year without using credits, according to the National Highway Traffic Safety Administration (NHTSA). The agency said its review of model year 2017 vehicles showed "automakers falling further behind current standards." The 2017 model fleet fell 1 1/2 miles per gallon short of the 33.8 mpg standard based on yearly performance without including credits, NHTSA reported. The shortfall was a half-mile per gallon for the 2016 model year. NHTSA said more automakers were failing to comply with standards for the 2018 and 2019 model years, "and the potential penalties on automakers, which are passed along to consumers, are expected to continue to increase." The Trump administration has used the widening gap between the emissions of automakers' U.S. fleets, which are skewing toward larger vehicles, and national vehicle CO2 emissions standards to bolster its case for freezing vehicle emissions and mileage standards at current levels through 2026. Environmental groups and regulators in California and other states are fighting against any rollback in standards, saying tough rules are needed to address climate change and reduce consumer outlays for fuel. NHTSA and the Environmental Protection Agency are working to finalize as early as next month a rewrite of the Obama administrationÂ’s fuel efficiency requirements, which call for sharp reductions in fleet-wide emissions by 2026. Fiat Chrysler is paying fines for the shortfall in its domestic passenger car fleet, which includes several front-wheel-drive Jeep and rear-drive Dodge SUVs and some sedans and muscle cars. The automaker killed its slow-selling domestic small and midsize sedans. After paying $77.3 million last year for a 2016 model year fuel-economy shortfall, a Fiat Chrysler spokesman confirmed Wednesday the company had received a letter on the 2017 penalty and has 60 days to pay the fine.

Stellantis and Ferrari boss is pitted against his own mother in Agnelli inheritance drama

  MILAN, Italy — A court in Turin is set to rule in the coming weeks on an inheritance dispute dividing the Agnelli family, the founders of the Fiat car company and arguably the best known of Italy's business dynasties. The case stems from the estate of Gianni Agnelli, the celebrated Fiat boss who was a symbol of Italy's post-war economic boom and who died two decades ago. It pits Agnelli's daughter Margherita, who inherited 1.2 billion euros ($1.3 billion), against three of her eight children including her eldest, John Elkann, the chairman of Ferrari and carmaker Stellantis. In the dispute that has riven one of Italy's elite families, Margherita is fighting to overturn agreements she signed after her father's death in order to eventually benefit her five children from a second marriage, sources close to her say. Should the Turin court decide in her favor, Margherita, who is 67 and Gianni Agnelli's only surviving child, could stake a claim to half of her late mother's estate and a share in the Elkann family business. The center of the dispute The dispute has its origins in an inheritance deal known as the "Geneva pacts" that Margherita, an artist and philanthropist, signed in 2004 after the death of her father the previous year and agreed to when Fiat was on the brink of bankruptcy. Under the first pact, Margherita received property, works of art and other liquid assets from Gianni's estate and renounced any future influence in the Dicembre (December) company, a key part of the ownership structure of Exor, the Agnelli-family holding. The pacts cemented John Elkann's position as Gianni Agnelli's chosen successor and effectively took his mother Margherita out of the equation. John Elkann, 47, now leads Exor, which owns slices of prestigious businesses and brands including national newspapers and the soccer club Juventus. The second pact covered what would happen to the estate of Margherita's mother Marella, who died in 2019 aged 91. Marella passed her Dicembre stake to three of her grandchildren, John, his brother Lapo and sister Ginevra, from Margherita's first marriage to journalist Alain Elkann. Margherita wants the pacts to be rescinded to be able to give her children with second husband Serge De Pahlen, a Franco-Russian former Fiat executive, a share of their grandmother's estate, sources close to her say.

Fiat Chrysler denies GM's 'preposterous' bribery allegations

DETROIT — Allegations by General Motors that Fiat Chrysler Automobiles bribed union officials are “preposterous” and read like a script from a “third-rate spy movie,” FCA lawyers wrote in court documents filed Monday. GM, in a court motion last week, alleged that Fiat Chrysler used foreign bank accounts to bribe union officials so they would stick GM with higher labor costs. But in a response, the Italian-American automaker fired back, calling GMÂ’s claims “defamatory and baseless.” GM alleged in a court filing last week that FCA spent millions on bribes by stashing the money in foreign accounts. The allegations of new evidence were made in a motion asking a federal judge to reconsider his July dismissal of a federal racketeering lawsuit against Fiat Chrysler. In trying to revive the lawsuit, GM alleged that bribes were paid to two former United Auto Workers presidents, as well as a former union vice president and at least one former GM employee. In its response, Fiat Chrysler said GM has to know that the prospect of getting the judge to overturn the dismissal is slim to none. “So this motion is apparently a vehicle to make more defamatory and baseless accusations about a competitor that is winning in the marketplace.” FCA denied allegations by GM that FCA paid two “moles” to infiltrate GM and send inside information. The company also denied that foreign bank accounts were involved. “That GM has extended its attacks to individual FCA officers and employees, making wild allegations against them without a shred of factual support, is despicable,” FCA lawyers wrote. GM's claims are based on the alleged existence of foreign bank accounts, which are legal, Fiat Chrysler wrote. “There is not one well-pled allegation in the proposed amended complaint (by GM) that these foreign bank accounts were used to pay bribes or facilitate any other illegal conduct,” FCA's response said. GM contends that bribes were paid to former United Auto Workers Presidents Dennis Williams and Ron Gettelfinger, as well as Vice President Joe Ashton. It also alleges money was paid to GM employees including Al Iacobelli, a former FCA labor negotiator who was hired and later released by GM. GM alleges that payments were made so the officials would saddle GM with more than $1 billion in additional labor costs.