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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.

2014 Ram Promaster recalled over stuck pedal fears

Ram's new, Fiat-derived cargo van, the ProMaster, is set to be recalled over concerns that the accelerator pedals could stick. The issue affects 9,655 ProMasters, with 7,935 vans in the US, 1,437 vehicles in Canada and 283 in Mexico.
There have been no reported injuries or crashes from the issue - according to The Detroit News, there haven't even been any customer complaints. The issue was reportedly discovered while Chrysler was testing the vehicle at its proving ground, which is what prompted the internal investigation. Still, it's unlikely that ProMaster vans will suffer from unintended acceleration issues, as each van is equipped with a brake-throttle override.
As of this writing, there's been no bulletin or activity from the National Highway Traffic Safety Administration.

2022 Ram 1500's G/T package reportedly includes Mopar goodies

Ram will fill the gap between the Hellcat-powered, 702-horsepower TRX and the rest of the 1500 range with an option package called G/T, according to a recent report. It will allegedly make its debut for the 2022 model year. Enthusiast website Mopar Insiders learned from unnamed sources that the G/T package will be available on the Sport, Rebel, and Laramie models. While it won't send shivers down the TRX's spine, it will add a cold-air intake system from the Mopar catalog, a 3.92 rear axle, and a specific exhaust system. G/T-only exterior decals and what Ram refers to as a Sport Performance Hood (likely one with a vent) will add a sporty touch to the design. Inside, G/T-spec trucks will ditch the standard 1500's knee-high shift dial in favor of a TRX-like console-mounted gear selector and shift paddles. Leather on the steering wheel, a floor console, power-adjustable front bucket seats, LED footwell lighting, and package-specific trim pieces are also on the list of upgrades included in the bundle. There's a memory function to save your preferred seat, radio, and mirror settings, too. But, if you can't find a comfortable position by moving the eight-way driver's seat, you'll be able to electronically adjust the pedals as well. What remains to be seen is how much Ram will charge to add the G/T package to a Sport, Rebel, or Laramie truck. It hasn't announced that the bundle is on its way, let alone revealed pricing information or availability. If the report is accurate, we expect that additional details about the 1500's sportier sibling will emerge in the next few months. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.