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Prosecutors indict three FCA employees in alleged emissions-cheating case

Federal prosecutors indicted three Fiat Chrysler Automobiles (FCA, now Stellantis) employees as part of an investigation into alleged emissions cheating. Charges unsealed on April 20, 2021, accuse the defendants of helping rig the emissions control system fitted to the 3.0-liter turbodiesel V6 used in some models during the 2010s. Prosecutors claim Emanuele Palma, Sergio Pasini, and Gianluca Sabbioni played a determining role in developing a defeat device that allowed the V6 to obtain certification from the Environmental Protection Agency (EPA) while polluting too much in normal driving conditions. Jeep and Ram began making the engine available in the Grand Cherokee and the 1500, respectively, in 2014, but the charges state plans to game the EPA started in 2011. Palma, Pasini, and Sabbioni knowingly mislead federal regulators, the charges claim; they called it "cycle beating," according to The Detroit News. While the three men were part of FCA's research and development department, they started the project while working for an Italian supplier named VM Motori, which FCA purchased in 2013. Pasini and Sabbioni are each charged with one count of conspiracy to defraud the United States and to violate the Clean Air Act, one count of conspiracy to commit wire fraud, and six counts of violating the Clean Air Act. They could spend several years behind bars if they're found guilty. Both are currently in their home country of Italy. Palma's legal troubles are more serious. He was charged with several counts in September 2019, though four wire fraud charges were dropped in November 2020. He lives in Bloomfield Hills, a city located on the far outskirts of Detroit. Prosecutors claim motorists spent over $4 billion on over 100,000 trucks and SUVs fitted with the non-compliant engine between January 2013 and September 2017. FCA has already agreed to pay $800 million to resolve civil claims from the Justice Department, state officials and customers, though it significantly has not admitted guilt. It stressed that "it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests."

CEO Sergio Marchionne curses FCA spokesman for emissions cheating denial

WASHINGTON — Fiat Chrysler Chief Executive Officer Sergio Marchionne reprimanded the company's top U.S. spokesman for issuing press releases about Fiat's vehicle emissions practices days after Volkswagen's disclosure in September 2015 that the German automaker had used illegal software to evade emissions tests, documents released Monday show. Lawyers suing Fiat Chrysler Automobiles in a securities case filed excerpts of an email from Marchionne to Gualberto Ranieri, then the company's U.S. spokesman, in a filing in federal court in New York criticizing him for saying that the company does not use defeat devices. "Are you out of your goddam mind?" Marchionne wrote in an email on Sept. 22, 2015, adding that Ranieri should be fired and calling his actions "utterly stupid and unconscionable." The company said in a statement on Monday it was "understandable that our CEO would have a forceful response to any employee who would opine on such a significant and complex matter, without the matter having been fully reviewed through its appropriate channels." The statement added that Ranieri's comments came just days after VW's emissions issue became public "and before a comprehensive internal review and discussions with component suppliers was possible." Fiat Chrysler was sued in 2015 along with Marchionne and other executives over claims it defrauded shareholders by overstating its ability to comply with vehicle safety laws. An amended version of the complaint filed in 2017 added claims about its compliance with emissions laws. The shareholders accused the defendants of inflating Fiat Chrysler's share price by hundreds of millions of dollars from October 2014 to October 2015 by downplaying safety concerns. They said the shortcomings materialized in 2015 when the automaker was fined $175 million by the National Highway Traffic Safety Administration, and took a roughly $670 million charge for recalls. Plaintiffs filed the excerpts seeking approval to take up to 40 additional depositions, including Marchionne's. The U.S. Justice Department sued Fiat Chrysler in May 2017, accusing it of illegally using software to bypass emission controls in 104,000 diesel vehicles sold since 2014. Fiat Chrysler has held numerous rounds of settlement talks with the Justice Department and California Air Resources Board to settle the civil suit, including talks as recently as earlier this month. It faces a separate criminal probe into the matter.

Ram fiddles with 1500 Classic options sheet for 2022

Mopar Insiders took a peek at early order guides for the 2022 Ram 1500 Classic, spotting tweaks to the options list that feel like responses to customer requests. The basic run-of-show doesn't change, next year's Classic coming in Tradesman, Express, SLT, and Warlock. For some reason the SLT has disappeared from the automaker's online configurator at the time of writing, but this could be a temporary pause due to any number of unusual situations in the auto industry happening now. Two years ago, though, the Classic offered nine trims, so rationalization isn't new for the line. Next year will also bring Regular Cabs with the 6'4" or 8' beds, Quad Cabs with the 6'4" bed, and Crew Cabs with the 5'7" or 6'4" bed. The first thing that's new is the step up to Uconnect 5 for the Electronics Group, on the same 8.4-inch touchscreen found across Ram, Dodge, and Chrysler products. MI says the guide also shows Uconnect 4C NAV as a standalone option. At the moment, that's a $795 extra that can only be had on the Warlock, and requires the $795 Electronics Group. MI didn't specify if the other three trims would get the option and if standalone truly means standalone. The only change we spot is no mention of an HD radio, which could be a matter of this being an early order guide, or a victim of the chip shortage, or something else. What's left out of the order guide for now is one convenience item, and one work item we figure Tradesman Classic buyers will miss. The first is the power sunroof, the $1,095 option nowhere to be seen, the second is the Ram Box storage system, the $1,295 also gone AWOL. What's been added are a couple of packages for getting more out of the truck when it's time to hit the dirt. The 2021 Tradesman offers a $745 Off-Road Package for some configurations that bundles tow hooks, a front suspension skid plate, anti-spin rear differential, extra-heavy-duty rear shocks, 265-section all-terrain tires, and either a 3.92 or 3.55 final drive. Next year, according to the guide, the package picks up a couple items offered in the current-gen Ram's Off-Road Package, adding a skid plate for the transfer case, a higher ride height — but we don't know by how much, a full-sized spare tire, and it specifies Yokohama tires. The package costs $840 for the current Ram right now, so the Classic price could go up considering the extra gear. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.