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The EPA has alleged that FCA installed undisclosed emissions software in about 100k Ram and Jeep diesel models [UPDATE]

Update: The text has been updated with official information from the EPA given in a press release and a conference call. Although an initial report from Reuters said the EPA will accuse Ram and Jeep of using emissions defeat devices today, that isn't quite the case. In a press release and a conference call, the EPA stated that the notice of violation sent to FCA is for the installation of eight undisclosed auxiliary emissions control devices on 2014 to 2016 Jeep Grand Cherokee and Ram 1500 models with the 3.0-liter turbodiesel V6. The violation applies to about 104,000 vehicles in total. The agency also explained that auxiliary emissions controls on vehicles are not necessarily illegal, but installing them without disclosing them to the EPA when having the vehicle certified is. Though this initial notice of violation is for installing undisclosed software, the EPA may soon also classify these emissions devices as defeat devices, as it did with the software Volkswagen used. Depending on the outcome of the investigation, there could be fines of up nearly $45,000 per vehicle involved in the notice of violation. The agency revealed that the software alters how the emissions system performs in certain situations. In controlled testing, the vehicles are compliant, but in conditions such as high speed operation, the EPA found the vehicles would produce much higher levels of NOx emissions. The EPA is continuing to investigate, and is waiting for FCA to explain why these emissions control devices are not cheating or defeat devices. In an official statement, FCA stated it is looking forward to explaining that the software does not constitute a defeat device, and has also proposed software updates to achieve compliance. During the conference call, EPA representatives also noted that the vehicles are still safe and legal to be driven, and that owners do not need to take any action yet regarding their cars. It should be noted there is no stop-sale on current models at this time. Additionally, 2017 versions of the 3.0-liter diesel FCA vehicles have not been emissions certified yet. Related Video: News Source: Reuters, Environmental Protection Agency Government/Legal RAM

Chrysler banks $507 million in Q2, trims 2013 earnings forecast

Chrysler has some good news and some bad news. First, profits were up 16 percent over the second quarter of 2012, bringing the Auburn Hills, Michigan-based manufacturer $507 million on the back of strong demand for trucks and SUVs (a recurring theme this quarter, particularly in the US). Q2 revenue was up as well, from $16.8 billion in 2012 to $18 billion in 2013. The bad news is that the Pentastar's overall earnings forecast for net income in 2013 has been trimmed from $2.2 billion to between $1.7 and $2.2 billion, according to Automotive News.
In addition to the adjusted net income forecast, Chrysler tweaked its operating profit from $3.8 billion to between $3.3 and $3.8 billion. This has gone largely unexplained by Chrysler, perhaps hoping the news of a three-percent increase in its transaction prices for Q2 will allow it to sweep this adjustment under the rug.
The star of the show for Chrysler has been its US sales, which saw a 10-percent jump, both bettering the industry average of eight percent and improving over the same stretch of 2012. As with the increase in transaction prices, Chrysler has the new Ram pickup and Jeep Grand Cherokee to thank. Perhaps most worrying from this report, though, is that every brand in the automaker's stable saw an increase in sales... except for the Chrysler brand itself.

Fiat Chrysler to get $105M fine from NHTSA for recall woes

The National Highway Traffic Safety Administration is about to send a powerful message to automakers doing business in the United States, assuming reports of an upcoming $105 million fine against Fiat Chrysler Automobiles comes to fruition. In addition to the record-setting monetary fine, according to The Wall Street Journal, FCA will have to accept an independent auditor that will monitor the company's recall and safety processes and will be forced to buy back certain recalled vehicles. In other cases, such as with Jeep Grand Cherokee and Liberty models with gas tanks that could potentially catch fire in certain types of accidents, FCA will offer financial encouragement for owners to get their recall work done or to trade those older vehicles in on new cars, according to the report. FCA could reportedly reduce its fines if it meets certain conditions, though those remain unclear at this time. These actions against FCA are being taken after NHTSA began a probe into the automaker over almost two dozen separate instances where the government claims FCA failed to follow proper procedures for recalls and safety defects. Included in those safety lapses are more than 11 million vehicles currently in customer hands. These penalties and fines are separate from the investigation over security problems with Chrysler's Uconnect system that allowed hackers to obtain remote access into key vehicle systems in 1.4 million vehicles. Related Video: Image Credit: Marco Bertorello/AFP/Getty Earnings/Financials Government/Legal Recalls Chrysler Dodge Fiat Jeep RAM Safety fiat chrysler automobiles fine