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Analysts wary over FCA lawsuit but say emissions not as bad as VW

MILAN - Any potential fines Fiat Chrysler (FCA) may need to pay to settle a US civil lawsuit over diesel emissions will unlikely top $1 billion, analysts said, adding the case appeared less serious than at larger rival Volkswagen. The US government filed a civil lawsuit on Tuesday accusing FCA of illegally using software to bypass emission controls in 104,000 vehicles sold since 2014, which it said led to higher than allowable levels of nitrogen oxide (NOx) that are blamed for respiratory illnesses. FCA's shares dropped 16 percent in January when the U.S. Environmental Protection Agency (EPA) first raised the accusations, adding the carmaker could face a maximum fine of about $4.6 billion. The stock has been under pressure since. Volkswagen agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, U.S. states and dealers. FCA, which sits on net debt of 5.1 billion euros ($5.70 billion), lacks VW's cash pile but analysts said its case looked much less severe. While VW admitted to intentionally cheating, Fiat Chrysler denies any wrongdoing. Authorities will have to prove that FCA's software constitutes a so-called "defeat device" and that it was fitted in the vehicles purposefully to bypass emission controls. Even if found guilty, the number of FCA vehicles targeted by the lawsuit is less than a fifth of those in the VW case. Applying calculations used in the German settlement, analysts estimate potential civil and criminal charges for Fiat Chrysler of around $800 million at most. Barclays has already cut its target price on the stock to take such a figure into account. Analysts also noted that FCA's vehicles are equipped with selective catalytic reduction (SCR) systems for cutting NOx emissions, so it is likely that any problem could be fixed through a software update. "Should this be the case, we estimate a total cost per vehicle of not more than around $100, i.e. around $10 million in aggregate," Evercore ISI analyst George Galliers said in a note. The estimates exclude any additional investments FCA may be asked to make in zero emissions vehicles infrastructure and awareness as was the case with VW. FCA said last week it would update the software in the vehicles in question, hoping it would alleviate the regulators' concern, but analysts said it may have been too little too late. The carmaker is also facing accusations over its diesel emissions in Europe.

Ram debuts Rumble Bee redux at Woodward [w/video]

Ten years ago, when the Ram truck still wore a Dodge badge, a special yellow-and-black model called the Rumble Bee launched, paying homage to the Super Bee muscle car of the 1960s. Now, we have the Charger Super Bee, wearing the same buzzworthy paint job. But for the 2013 Woodward Dream Cruise, Ram has created a modern version of that Rumble Bee pickup based on the current 2013 Ram 1500, though unlike the last go-around, this one is purely a concept. For now, anyway.
This concept truck uses the 1500's lightest configuration - a single cab, two-wheel-drive model. From there, it has been painted in Drone Yellow with a matte finish, and a Mopar ground effects kit gives the truck a more aggressive stance on the road. The large, 22-inch wheels certainly help that, as well, painted in black to match the other dark accents found around the pickup's body.
Inside, to no one's surprise, the black and yellow theme carries on, with leather upholstery and sport mesh seats. That Rumble Bee logo adorns the chairs and floor mats, but the coolest (or weirdest) touch is the actual amber-encased bee found within the rotary shift knob. Seriously.

2019 Ram 1500 spotted with split tailgate

A little over three years ago, we discovered a patent from Fiat-Chrysler that showed a pickup truck tailgate that not only dropped down like a normal one, but was also split into two swing-out halves. It appears to be a reality now, since one of the Ram 1500 prototypes shown above has just such a tailgate. The tailgate above does look a bit different from the one shown in the patent drawings. For one thing, it's not a 50/50 split in the middle. Instead, Ram seems to have opted for something like a 60/40, or maybe 70/30 split. We're not sure exactly why this is, but there could be a few advantages. For one, It probably allows for the use of the same or nearly the same handle as on conventional Rams, as well as the same badging. For another, if the tailgate operates as described in the patent, it might be possible to open just one side without opening the other, and having the shorter piece could offer some flexibility in tight areas where a larger half couldn't open fully. Testing alongside the split tailgate truck were some other Ram 1500s that had their tailgates completely covered. They did reveal some other cargo management features that should show up on the production truck, such as a return of the RamBox bedside storage compartments. One of the trucks also revealed some ribbed bedsides that would allow the positioning of a cargo divider just about anywhere in the bed. We expect to see the new Ram 1500 to be fully revealed at the Detroit Auto Show in January. In the meantime, you can check out what we believe the production truck will look like, as well as everything we know about it, here. Related Video: