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Fiat Chrysler to pay $800M in Jeep, Ram emissions cheating case

WASHINGTON — Fiat Chrysler Automobiles NV has agreed to a settlement worth about $800 million to resolve claims from the U.S. Justice Department and state of California that it used illegal software that produced false results on diesel-emissions tests, but still faces an ongoing criminal probe. The hefty penalty is the latest fallout from the U.S. government's stepped-up enforcement of vehicle emissions rules after Volkswagen AG admitted in September 2015 to intentionally evading emissions rules. The Fiat Chrysler settlement includes $311 million in total civil penalties to U.S. and California regulators, up to $280 million to resolve claims from diesel owners, and extended warranties worth $105 million. It covers 104,000 Fiat Chrysler 2014-16 Ram 1500 and Jeep Grand Cherokee diesels, the Justice Department said. Regulators said Fiat Chrysler used "defeat devices" to cheat emissions tests in real-world driving. Fiat Chrysler said in a statement that "the settlements do not change the Company's position that it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests." The company did not admit liability. "You wouldn't pay $311 million total dollars to the federal government in civil penalties if there were not a serious problem," U.S. assistant attorney general Jeff Clark told a news conference. The settlement also includes $72.5 million for state civil penalties, and $33.5 million in payments to California to offset excess emissions and consumer claims. German auto supplier Robert Bosch GmbH, which provided the emissions control software for the vehicles, also agreed to pay $27.5 million to resolve claims from diesel owners. Owners will receive an average of $2,800 to obtain software updates as part of the emissions recall, Fiat Chrysler said. Elizabeth Cabraser, a lawyer for the owners, said the "substantial cash compensation" will ensure that consumers get the recall fix. Bosch, which also provided diesel emissions software to Volkswagen, also agreed to pay $103.5 million to settle claims with 47 U.S. states that said the supplier "enabled" the cheating and should have known its customers would use the software improperly, the New York Attorney General's Office said.

Fiat 500 joins the Hyundai Veloster in the three-door hatchback club

Fiat aims to retain motorists on the brink of outgrowing the pocket-sized 500 by expanding the line-up with a more practical variant fitted with a single rear-hinged half door. Called 3+1, it's offered exclusively as an electric car. Viewed from the driver's side, the 3+1 looks almost exactly like the new 500 introduced earlier in 2020. It's when you walk around to the passenger's side that you notice the differences. Stylists made the front door shorter to accommodate a half door similar to what we've seen on several extended-cab pickups, the Mazda RX-8, and a couple of Saturn models. Hyundai's Veloster is a three-door hatch, too, but its third door is hinged at the front. Fiat explained the half door can only be opened after the front door is pulled out of the way to ensure the passengers don't accidentally unlatch it. It left out the b-pillar, so users can access the rear bench without having to perform contortionist-like moves to clear the front passenger's seat. Extra door aside, the 3+1 is a regular 500; its dimensions are identical to the two-door model's, and it weighs approximately 66 pounds more.  Everything under the sheet metal is shared with the two-door 500, too, meaning the 3+1 is built on a 42-kilowatt-hour lithium-ion battery pack that zaps a 118-horsepower electric motor into motion. Its driving range checks in at 199 miles on the rather optimistic WLTP testing cycle, and the sprint from zero to 62 mph takes nine seconds. Keep your foot down, and the speedometer needle will stop moving after it hits 93 mph, the 500's top speed. Fiat hasn't published pricing yet, but it's of little interest to us because the 3+1 will not be sold in the United States due in part to its small size. Even the last-generation 500 – which will remain in production in the foreseeable future – has been axed from the company's American range. If you're curious, however, the new two-door model starts at 25,900 euros (about $30,600) before various incentives enter the equation. This partially explains why it will not be sold in America; Fiat doesn't think it can talk Americans into spending crossover money on a city car. What about the wagon? Rewind to 2018, when former Fiat-Chrysler Automobiles (FCA) boss Sergio Marchionne presented the group's five-year plan in front of investors from all over the world. Although he focused on Jeep and Ram, he announced the return of the 500 Giardiniera nameplate used by Fiat and Autobianchi between 1960 and 1977.

Stellantis mega-merger gets approval from FCA, PSA shareholders

MILAN — Shareholders of Fiat Chrysler and PSA Peugeot decisively voted Monday to merge the U.S.-Italian and French carmakers to create worldÂ’s 4th-largest auto company. Addressing separate meetings, both PSA Peugeot CEO Carlos Tavares and Fiat Chrysler Chairman John Elkann spoke of the “historic” importance of the vote, which combines legacy car companies that helped write the industrial histories of the United States, France and Italy. Before the merger is finalized, shares in the new company, to be called Stellantis, must the launched. It will be traded in Milan, New York and Paris. The marriage of PSA Peugeot and Fiat Chrysler Automobiles is built on the promise of cost-savings in the capital-hungry industry, but what remains to be seen is if it will be able to preserve jobs and heritage brands in a global market still suffering from the pandemic. The deal will create the worldÂ’s fourth-largest carmaker, with the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan, and create 5 billion euros in annual synergies.  “We are fully aware of the fact that together we will be stronger than individually,'' PSA CEO Carlos Tavares told a virtual gathering of eligible shareholders. “The two companies are in good health. These two companies have strong positions in their markets.” The new company will put together under one roof French mass-market carmakers Peugeot and Citroen, top-selling Jeep and Italian luxury and sports brands Maserati and Alfa Romeo - pooling companies that have helped define the industry in the United States, France and Italy. While the tie-up is billed as a merger of equals, the power advantage goes to PSA, with Tavares running Stellantis and holding the tie-breaking vote on the 11-seat board. Tavares is set to take full control of the company early this year, possibly by the end of January. Fiat Chrysler chairman John Elkann, heir to the Fiat-founding Agnelli family and Fiat ChryslerÂ’s biggest shareholder, will be the Stellantis chairman. Fiat Chrysler CEO Mike Manley will head North American operations, which is key to Tavares' long-time goal of getting a U.S. foothold for the French carmaker he has run since 2014, and the clear money-maker for Fiat Chrysler. Such a deal was long wanted by Fiat ChryslerÂ’s long-time CEO Sergio Marchionne, who had predicted the necessity of consolidation in the industry. He was unable to find a deal before his sudden death in July 2018.