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U.S. automakers unite in opposition to possible Trump vehicle tariffs

WASHINGTON — The U.S. auto industry urged President Donald Trump's administration on Monday not to saddle imported cars and auto parts with steep tariffs, after the U.S. Commerce Department sent a confidential report to the White House late on Sunday with its recommendations for how to proceed. Some trade organizations also blasted the Commerce Department for keeping the details of its "Section 232" national security report shrouded in secrecy, which will make it much harder for the industry to react during the next 90 days Trump will have to review it. "Secrecy around the report only increases the uncertainty and concern across the industry created by the threat of tariffs," the Motor and Equipment Manufacturers Association said in a statement, adding that it was "alarmed and dismayed." "It is critical that our industry have the opportunity to review the recommendations and advise the White House on how proposed tariffs, if they are recommended, will put jobs at risk, impact consumers, and trigger a reduction in U.S. investments that could set us back decades." Representatives from the White House and the Commerce Department could not immediately be reached. The industry has warned that possible tariffs of up to 25 percent on millions of imported cars and parts would add thousands of dollars to vehicle costs and potentially devastate the U.S economy by slashing jobs. Administration officials have said tariff threats on autos are a way to win concessions from Japan and the EU. Last year, Trump agreed not to impose tariffs as long as talks with the two trading partners were proceeding in a productive manner. "We believe the imposition of higher import tariffs on automotive products under Section 232 and the likely retaliatory tariffs against U.S. auto exports would undermine - and not help - the economic and employment contributions that FCA, US, Ford Motor Company and General Motors make to the U.S. economy," said former Missouri Governor Matt Blunt, the president of the American Automotive Policy Council. Some Republican lawmakers have also said they share the industry's concerns. In a statement issued on Monday, Republican Congresswoman Jackie Walorski said she fears the Commerce Department's report could "set the stage for costly tariffs on cars and auto parts." "President Trump is right to seek a level playing field for American businesses and workers, but the best way to do that is with a scalpel, not an axe," she added.

2019 Fiat 500X First Drive Review | Anchor's away!

MALIBU, Calif. — We lived with the Fiat 500X for a year and were pleasantly surprised by everything it had to offer but — and this is a big but, a but worthy of Sir Mix-a-LotÂ’s affection — the entire powertrain.  ItÂ’s no small feat that the small crossover was able to charm us despite our distaste for the very thing that makes it move. For 2019Â’s mid-cycle facelift, Fiat has addressed that exact issue. Gone is the old, naturally aspirated 2.4-liter inline-four that Fiat called the Tigershark, but we called a boat anchor. It was noisy, unresponsive, and an insult to tiger sharks. We preferred the lower-spec 1.4-liter turbo to the higher-spec 2.4, and suggested that it should be offered on all trims. Now the sole engine on all trim levels is a turbocharged 1.3-liter with stop-start and Multiair III, FiatÂ’s third-generation cam-less variable intake valve system. Fiat also eliminated the front-wheel-drive option for 2019, making all 500Xs all-wheel drive. Though the motor is down three horsepower overall — 177 versus the TigersharkÂ’s 180 — it more than makes up for it in torque. The outgoing engine produced 175 lb-ft at a lofty 3,900 rpm, which wasnÂ’t really useful in real-world driving. The 2019 comes with 210 lb-ft at a mere 2,200 rpm, giving drivers significantly more grunt at the low end. Beyond that, Fiat says the engine is less thirsty than the 2.4-liter — the only engine available in 2018 all-wheel-drive models — returning 24 city and 30 highway mpg. ThatÂ’s 3 mpg better in the city and 1 on the highway, made possible with more efficient technologies like needle roller bearings around the exhaust cam, a variable displacement oil pump, and an integrated charge-air cooler and exhaust manifold. We'll note that the 2018 500X equipped with front-wheel drive, the 1.4-liter turbocharged engine and six-speed manual transmission is still the most efficient of them all, returning 25 city and 33 highway mpg. “The engine is about 80 pounds lighter than the 2.4,” chief engineer Adam Remesz told us, putting total curb weight for the AWD model with 17-inch alloys at 3,305 pounds. Improved efficiency also means reduced CO2 emissions, down from 264 grams per mile to 242. According to Remesz, thatÂ’s “about the amount expelled by an average adult male running a 10k race.” Sure. The new mill mostly addresses our biggest gripe with the 500X. The throttle feels peppier, and rolling acceleration is much improved.

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.