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Feds sue Fiat Chrysler, accuse it of cheating on diesel emissions

WASHINGTON - The US government has filed a civil lawsuit accusing Fiat Chrysler Automobiles NV of using software to bypass emission controls in diesel vehicles. The Justice Department suit, filed in US district court in Detroit, is a procedural step that may ramp up pressure on Fiat Chrysler. The suit could ultimately help lead to a settlement, as in an earlier probe of rival Volkswagen AG that will cost VW up to $25 billion, but which affected a much larger number of vehicles. VW admitted to intentionally cheating while Fiat Chrysler denies wrongdoing. It did not immediately comment on Tuesday. US-listed Fiat Chrysler shares were down 2.9 percent at $10.44. The suit also names Fiat Chrysler's unit V.M. Motori SpA, which designed the engine in question. Reuters reported last week the Justice Department and EPA have obtained internal emails and other documents written in Italian that look at engine development and emissions issues that raise significant questions. The investigation has scrutinized VM Motori. FCA acquired a 50 percent stake in VM Motori in 2010 and the remainder in October 2013. The lawsuit asserts the Italian-American automaker placed undeclared "defeat devices," or auxiliary emissions controls, in 2014-2016 Fiat Chrysler diesel vehicles that led to "much higher" than allowable levels of nitrogen oxide, or NOx pollution, which is linked to smog formation and respiratory problems. The suit seeks injunctive relief and unspecified civil penalties. EPA said in January the maximum fine is about $4.6 billion. In January, EPA and California accused Fiat Chrysler of illegally using undisclosed software to allow excess diesel emissions in 104,000 U.S. 2014-2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks. Fiat Chrysler said on Friday it plans to update software that it expects will resolve the concerns of U.S. regulators about excess emissions in those vehicles. The January notice was the result of regulators' investigation of rival Volkswagen, which prompted the government to review emissions from all other passenger diesel vehicles. Volkswagen admitted in September 2015 to installing secret software allowing its cars to emit up to 40 times legal pollution levels. In total, VW has agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, states and dealers and offered to buy back about 500,000 polluting US vehicles.

Fiat's Ecobasic concept shows what the city car of the future looked like in 1999

In the late 1990s, Fiat set out to prove cheap and eco-friendly weren't mutually exclusive. It argued a car could be both with an innovative, opinion-cleaving concept named Ecobasic built to preview the econobox of the future. Fiat quietly presented the Ecobasic at the 1999 edition of the Bologna auto show, which was still a big deal 21 years ago, and it displayed it again at the following year's Geneva show. Its high-top Converse-shaped silhouette turned heads everywhere it went, and that was only the beginning. Looking closer revealed its front end received a transparent panel that let users add oil, coolant, wiper fluid, or give the battery a jump. Audi adopted a similar solution for its A2. It had one door on the driver's side, two on the passenger's side, and a transparent hatch underlined by a pair of horizontal lights. It stretched 137.7 inches long, 67.3 inches wide, and 57.8 inches tall, dimensions that made it about two inches taller, three inches wider, and an inch lower than a modern-day 500. Keeping manufacturing costs in check was a priority, so Fiat used plastic body panels dyed with color during the production process and mounted them to a steel structure, a configuration not unlike the Smart ForTwo's. They were designed to be recycled at the end of the car's life cycle. Inside, the passengers were treated to a marvelous exercise in simple, back-to-the-basics design. The driver sat in front of a four-spoke steering wheel, while a speedometer and a fuel gauge were integrated into a pod that sprouted from the center of the dashboard. The automatic transmission's gear selector, a handful of buttons, and the HVAC controls were aligned below it. The domed, bolted-down hood covered a 1.2-liter four-cylinder turbodiesel developed specifically for the Ecobasic. It showcased Fiat's Multijet common-rail technology, which promised improve fuel economy without compromising power. On paper, that's exactly what it achieved. The four developed 61 horsepower at 3,500 rpm and 118 pound-feet of torque at 1,800 rpm, which were reasonably respectable figures for an Italian city car made in the late 1990s, and it returned nearly 80 miles per gallon. Fiat quoted a 13-second 0-62-mph time. The company apparently did not blush when it hinted it could build 200,000 units of the Ecobasic annually and sell each one for approximately 5,000 euros, a price which would have made it one of the cheapest new cars sold in Europe.

FCA to make 1 million face masks a month for North America coronavirus fight

MILAN, Italy — Italian-U.S. car giant Fiat Chrysler has confirmed plans to produce a million face masks a month and said it will distribute them to emergency services in North America to help the fight against coronavirus. FCA, which is also trying to help produce badly needed respirators for patients in intensive care in Italy, is one of a number of large manufacturers adapting production lines to make products in desperately short supply. "Production capacity is being installed this week and the company will start manufacturing face masks in the coming weeks with initial distribution across the United States, Canada and Mexico," it said in a statement released late on Monday. The monthly output of 1 million masks will be donated to police, emergency medical staff, firefighters and to workers in hospitals and health care clinics, it said. The decision to begin distribution of masks in North America rather than Italy, the company's other home country, underlines the difficult balance global companies are having to maintain as they weigh where to offer help in the emergency. Face masks and other protective equipment for medical staff have been running out across the world as thousands of new cases of the highly contagious virus have arrived in hospitals daily. Fiat's position as a historic pillar of Italian industry makes the issue of where to provide help sensitive, especially as Italy is the country worst hit by the virus so far. Both FCA and its controlling shareholder Exor, the investment firm of Italy's Agnelli family, have offered significant assistance to efforts to handle the crisis in Italy, where almost 6,000 people have died. FCA and luxury automaker Ferrari, also controlled by Exor, are in talks with Siare, Italy's biggest respirator manufacturer, to help it double production of the life-saving machines. In addition, the Agnelli family said last week it was donating 10 million euros to fight the virus emergency in Italy. It said companies controlled by Exor bought 150 ventilators and other medical equipment abroad, provided vehicles for support of people in need and were in touch with Italian authorities to help them buy medical equipment and healthcare products abroad. As part of the process, an Exor spokesman said on Tuesday the group had made an initial purchase of 250,000 face masks in China which would be distributed in Italy and were expected to arrive by the end of this week. Related Video: