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Fiat recalling 2014 500L over dual-clutch transmission

Much like it did yesterday, Fiat Chrysler Automotive is announcing a voluntary recall of the five-door Fiat 500L. Where yesterday's recall covered Jeep and Dodge SUVs over performance issues with the brakes, today's bulletin is perhaps more serious. Over 19,000 500Ls equipped with the Fiat-sourced, six-speed, dual-clutch automatic are being called in for a software update that should sort out the issues some customers are experiencing with the gearbox. Those troubles mainly consist of 500Ls that won't shift out of park and don't respond or are slow to respond to commands for gear changes. There have been no reported injuries or accidents due to the problems, which investigating engineers believe is caused by a microcontroller component that doesn't react well with temperature extremes. Of the 19,500 vehicles being recalled, around 20 percent are in dealership inventories. The vast majority of the cars (18,100) are in the US, while the remaining 1,400 are up north, in Canada. Fiat will be covering the costs of the software reflash and will begin notifying customers soon. Scroll down for the official release from Fiat Chrysler. Statement: Software Update March 7, 2014 , Auburn Hills, Mich. - Chrysler Group is recalling approximately 19,500 cars to upgrade their transmission software. Chrysler Group engineers launched an investigation after reviewing reports that some vehicles equipped with dual dry clutch automatic transmissions would not shift readily out of park and/or their transmissions did not receive, or were slow to receive, an intended gear selection. Chrysler Group is unaware of any related injuries or accidents. The investigation discovered the function of one microcontroller component may be compromised by certain temperature extremes. A software update resolves the issue. Affected are certain 2014 Fiat 500L models, of which approximately 20 percent are in dealer hands. Repair costs will be borne by the Company. Affected customers – approximately 18,100 in the U.S. and 1,400 in Canada – will be contacted and advised when to schedule service. Of the total, an estimated 200 vehicles may require shift-module replacement to ensure hardware-software compatibility. Customers who remain concerned may call 1-800-853-1403.

Marchionne: Maserati to ‘switch all of its portfolio to electrification’  

After 2019, all Maseratis will be electrified, according to FCA CEO Sergio Marchionne. It's part of a larger electrification strategy from FCA as a whole, which intends to have half of its fleet electrified by the end of its five-year plan through 2022, Marchionne said. On an earnings call last week, he said: I'll give you a couple of broad sort of indications of where we are today in terms of the delineation of the post 2018 FCA. The first one and I've mentioned this in passing and other occasions about the fact that there's nothing that will prevent an OEM from engaging in the type of development work that Tesla has done so far. We have been – as you well know, we have been reluctant to embrace that avenue until we saw a clear – a path forward. I think we're now in a position to acknowledge at least one of our brands and in particular Maserati will, when it completes the development of its next two models effectively switch all of its portfolio to electrification. It's especially significant because of FCA's feet-dragging when it comes to offering hybrid and electric vehicles. As it currently stands, Fiat offers the 500e ­– of which Sergio Marchionne has said "I hope you don't buy it" because the company loses money on them — and Chrysler offers the Pacifica Hybrid minivan, which experienced significant launch delays. While diesel is an important part of the emissions strategy for 2020 standards in Europe, Marchionne said he thinks the current situation leaves diesel in a "weaker state" as a solution. Hence the electrification push. He said, "I think what has really made the issue absolutely mandatory now is the fate of diesel and the fact that it's actually the inclusion of, especially in Europe, of some type of electrification on gas engines is inevitable." In the short term, at least, it will put pressure on prices. Though Marchionne said he's "encouraged" by the direction of battery costs, he said, "I still think that there's going to be a huge increase in prices in 2021, 2022. If effectively the electrification becomes as widespread as people expect, there has to be a shift in pricing." He also says that FCA has no intention of making its own batteries. "Given the level of knowledge and depth of that knowledge that sits with other people in the industry, what right do I have to enter that space? None." We already know what the first two plug-in vehicles from Maserati will likely be. The company plans to launch an all-electric Alfieri in 2020.

Fiat/PSA's dominance in small vans hangs up EU's merger approval

BRUSSELS — EU antitrust regulators are concerned about Fiat Chrysler and Peugeot / PSA's combined high market share in small vans and may require concessions to clear their $50 billion merger, people familiar with the matter said. The companies, which are seeking to create the world's fourth biggest carmaker, were told of the European Commission's concerns last week. If Fiat and PSA fail to dispel the European Commission's doubts in the next two days and subsequently decline to offer concessions by Wednesday, the deadline for doing so, the deal would face a four-month-long investigation. The EU competition enforcer, which has set a June 17 deadline for its preliminary review, declined to comment. Fiat was not immediately available for comment while PSA had no immediate comment. Hiving off overlapping businesses, usually a regulatory demand to ensure more competition, could prove tricky for the carmakers because of the technicalities. Fiat and PSA are looking to merge to help offset slowing demand and shoulder the cost of making cleaner vehicles to meet tougher emissions regulations. The deal puts under one roof the Italian carmaker's brands such as Fiat, Jeep, Dodge, Ram, Maserati and the French company's Peugeot, Opel and DS. Related Video: Government/Legal Chrysler Dodge Fiat Jeep Maserati RAM Citroen Opel Peugeot