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Dongfeng and PSA extend Chinese joint venture

BEIJING/PARIS — China's Dongfeng and Peugeot maker PSA are extending their business cooperation, despite the Chinese company reducing its stake in PSA to help smooth the French carmaker's merger with Fiat Chrysler Automobiles (FCA). Dongfeng said on Thursday it had agreed with PSA to extend the duration of their joint venture Dongfeng Peugeot Citroen Automobiles (DPCA). Under the deal, the venture could get the rights to PSA's new brands in China and will benefit from new technologies and intellectual properties, the Chinese company said. PSA was not immediately available for comment. The announcement comes a day after the companies said Dongfeng would reduce its 12.2% stake in PSA by selling 30.7 million shares to the French company. Analysts said the move could smooth U.S. regulatory approval for PSA's roughly $50 billion (GBP38.97 billion) merger with Italian-American carmaker FCA. The sale of Dongfeng's shares in PSA, worth around 680 million euros ($757 million), will leave the Chinese group holding around 4.5% of the merged PSA-FCA, which is set to become the world's fourth-biggest carmaker by sales volumes. "As the cooperation between Dongfeng and PSA deepens, we expect the joint venture to continue making good progress in China," a Dongfeng representative said. On a conference call, Dongfeng said DPCA would have exclusive rights to PSA's Opel cars should the partners agree to bring the brand to China, and enjoy lower prices on car parts imported from PSA. Earlier this year, a document seen by Reuters showed Dongfeng and PSA plan to cut jobs at Wuhan-based DPCA and reduce its number of car plants to try to make the venture more profitable. Chrysler Dodge Fiat Jeep RAM Citroen Peugeot China FCA PSA Dongfeng

Researchers who busted VW cheating say FCA's diesels dirty, too

The Wall Street Journal today reported on an upcoming report from West Virginia University's Center for Alternative Fuels Engines and Emissions, which is the same lab that investigated Volkswagen emissions cheating. The report, which will be released in a matter of weeks, alleges that 2014 and 2015 model year Jeep and Ram vehicles with diesel engines emit excess pollution. But it does not specify whether the company used defeat devices. Since the report discusses Jeep Grand Cherokees, and that engine is also available in the Ram 1500, it's safe to assume that one of the implicated engines is the EcoDiesel V6, a unit actually produced by VM Motori. It's unclear whether the report covers any of the Cummins engines used in heavier-duty Ram pickups. This report comes on the heels of a federal investigation into FCA's diesel vehicles. That investigation focused on the EcoDiesel engine used in 2014-2016 vehicles. The feds were seeking a fine of up to $4.6 billion. The EPA and the State of California also previously accused FCA of using a defeat device on the same vehicles back in January. FCA, for its part, alleges that the WVU study might have been commissioned by people interested in suing the company, and disputes the testing methodology, according to the WSJ. We've reached out to WVU to confirm which engines are implicated in its study and will update this post when we have more to share. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. News Source: The Wall Street JournalImage Credit: REUTERS/Gary Cameron Government/Legal Green Jeep RAM Diesel Vehicles ecodiesel

Chrysler recalling 31k SUVs and vans

Chrysler is issuing recalls covering roughly 31,700 vehicles worldwide due to two separate problems. In both cases the company believes that most of the affected vehicles are either still on, or in transit to, dealer lots.
One recall covers roughly 10,700 Dodge Durango, Jeep Cherokee, Grand Cherokee and Grand Cherokee SRT models from the 2014 model year built between January 16 and April 17, 2014. The SUVs need a software update for the cruise control. It's possible that when the cruise is on and the driver presses on the throttle, the acceleration could last a second after the pedal is released or two seconds for the SRT. Afterward, they return to the speed originally set by the driver.
Chrysler says it isn't aware of any accidents, injuries or even reported incidents of this happening in the real world. Also, in all cases, if the driver presses on the brake, the cruise shuts off. The automaker believes that there are about 6,100 affected SUVs in the US, 950 in Canada, 425 in Mexico and 3,200 outside of North America. The software upgrade will be ready shortly, the company says.