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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 1500 named Truck of Texas, Chrysler Cleans Up at Truck Rodeo

Trucks are king in Texas, so the annual Truck of Texas awarded by the Texas Auto Writers Association gives automakers big bragging rights. This year's Texas Truck Rodeo featured 63 trucks, crossover and SUVs, and the 2014 Ram 1500 took home the prestigious Truck of Texas, giving the pickup back-to-back wins for this award. The good news didn't stop there for Chrysler Group, as Ram, Dodge and Jeep dominated most other categories, accounting for 14 of the possible 24 awards.
Ram also was named the Truck Line of Texas winning seven individual awards - including Best Powertrain with its 3.0-liter EcoDiesel, Best Technology with the new Heavy Duty rear coil suspension and Best Commercial Vehicle with the 2014 Ram Promaster. The Jeep Grand Cherokee won two individual awards to be named the SUV of Texas, while the Hyundai Santa Fe was named the Crossover of Texas, and Nissan picked up three awards, too. Scroll down for the full list of categories and winners.

Ram 1500 Rebel OTG concept shows up in a patent filing

Stellantis filed a patent with the U.S. Patent and Trademark Office on April 12, initially found by Car and Driver, in the generic category "Automobile Body." But the images within portray a specific vehicle: The 2020 Ram Rebel 1500 Off the Grid (OTG) concept from the 2019 SEMA show. That concept dipped a regular old Ram in a vat of Mopar and third-party accessories, the result a rig built for bugging out. Off-the-shelf and custom Mopar gear included a larger grille with flow-through RAM lettering, a steel front bumper with integrated off-road lights, a high-rise snorkel, side steps doubling as rock rails, a two-inch lift kit, and fender flares over beadlock wheels wrapped in 35-inch Goodyear meat. The Ram Power Wagon donated its 10,000-pound Warn winch, the Ram Tradesman donated its rear bumper for a better departure angle and vinyl interior flooring. This could be considered the base form of the truck, and it's what the patent drawings illustrate — a rig Stellantis could put on a dealer floor in 48 hours. The third-party accessories are missing. On the concept, those were a Yakima rooftop basket and utility rack with more LED lighting, a rooftop tent, awning, and solar array, and a bed-mounted slide-out cooking area and cooler from Dometic. With factory-built hardcore off-roaders even more popular than they were in 2019, the question is whether Ram plans to throw a Rebel-based hat in the ring. Muscle Cars & Trucks wonders if Ram is considering dividing its performance truck lineup into a big-bore go-fast TRX side challenging pickups like the Ford F-150 Raptor and a hardcore expedition side taking on pickups like the Chevrolet Silverado ZR2. The concept Rebel OTG was powered by the 3.0-liter V6 EcoDiesel with 260 horsepower and 480 pound-feet of torque, which would be another big differentiator on a showroom floor. Or, as C/D muses, this could be a template for a Mopar special edition, something Ram can test the waters with before committing. Or, as with so many other patents, it could be nothing. If nothing else, it's nice to see Ram still thinking about it. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.