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Fiat recalling 2014 500L over dual-clutch transmission
Tue, Mar 11 2014Much 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.
Fiat stock rockets up after word of Chrysler deal
Thu, 02 Jan 2014Now that Fiat has finalized a deal to purchase the outstanding shares of Chrysler owned by the United Auto Workers' VEBA retiree heathcare fund without having to file for an IPO, you can count the Italian automaker's stockholders among the happy. The Detroit News reports that Fiat stock closed Thursday with a 12-percent gain for the day on the Borsa Italiana, having been up by as much as 15.8 percent during the day's trading, at prices not seen since mid-2011. One trader reasoned the run was because Fiat "paid less than the market had expected and there will be no capital increase to fund this."
But there are some who worry, including bank analysts and unions. The final price of the stake will be $4.35 billion - $1.9 billion in cash from Chrysler, $1.75 billion from Fiat and extraordinary dividends in the amount of $700 million paid over three years. Adding that sum to its ledger will raise Fiat's debt level to roughly 10 billion euros ($13.8 billion), which Citibank says will make it the most indebted OEM in Europe.
Italian unions are also concerned about what the deal means for the future. Fiat CEO Sergio Marchionne has had an at-times contentious relationship with both unions and the Italian government over the future of Italian manufacturing, a fact that makes headlines because Fiat is Italy's largest private employer. At least two left-leaning unions have publicly called on Fiat to give guarantees and to explain what the deal means for its Italian operations, while a centrist union argues this is "good news for Fiat workers, for the auto industry and for our country."
Ex-Fiat exec: VW diesel scandal will hurt plug-in hybrids
Thu, Apr 7 2016It doesn't sound right at first blush, but former Fiat executive and noted diesel-powertrain expert Rinaldo Rinolfi thinks that plug-in hybrid sales may be more impacted by the VW diesel-emissions scandal than diesel sales. Rinolfi, who worked for Fiat for 40 years, told Automotive News Europe, said that the Euro 6 emissions rules that went into effect in 2015 have already increased diesel-engine production costs enough to raise prices and ultimately flatten demand. By the end of the decade, diesel-vehicle sales will settle in at a 40-percent market share of new European vehicles, and that was going to happen with or without the scandal. "Every carmaker has found ways to achieve fuel consumption and emissions results that have progressively diverged from the real driving conditions." - Rinaldo Rinolfi Makers of plug-in hybrids have more to lose, though, because every PHEV maker has figured out a way to keep emissions figures artificially low, Rinolfi said. Under New European Driving Cycle (NEDC) standards, PHEVs can be tested part of the time with the electric motor in action, meaning emissions get driven down to 30 percent to 40 percent less than real-world figures. With the VW scandal pushing regulators to use real-world figures, those PHEV emissions numbers are expected to rise substantially. To a lesser extent, hybrid emissions figures are also tested as artificially low. "Over the years, even without defeat devices, every carmaker has found ways to achieve fuel consumption and emissions results that have progressively diverged from the real driving conditions the customer experiences," Rinolfi said in the Automotive News Europe interview. Rinolfi is a little sunnier about compressed natural gas (CNG) vehicles, estimating that CNG emissions are as much as 25 percent lower compared to conventional vehicles. As for battery-electrics, he's not so optimistic, estimating that there needs to be at least a tenfold improvement in energy efficiency for EVs to be truly competitive with conventional vehicles. "I've been waiting for a true breakthrough for the past 25 years, but I've not seen it yet," Rinolfi said about EVs in the Automotive News Europe interview. Related Video: News Source: Automotive News Europe-sub.req.Image Credit: Arnd Wiegmann / Reuters Green Fiat Volkswagen Diesel Vehicles Electric Hybrid diesel emissions scandal nedc