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EU finds Jeep Grand Cherokee and Suzuki Vitara break emissions rules

AMSTERDAM — Fiat Chrysler's Jeep Grand Cherokee and Suzuki's Vitara diesel models both break emissions rules and must be fixed or face a ban on sales across Europe, the Dutch road authority ruled on Thursday. The RDW authority, acting as the reference regulator for across the European Union, said Jeep had developed a software fix and that the authority had ordered the company to recall the model across Europe to roll it out. It added Suzuki had yet to find a credible solution for the Vitara. "Suzuki must come with adequate improvement measures or the RDW will begin the process of revoking its European type approval," the RDW said in a statement, adding it had also started the process of revoking approval for the Jeep Grand Cherokee as a "precautionary measure." Regulators across the world have been testing diesel models since Volkswagen admitted in 2015 that it used illegal software to cheat U.S. emissions tests. The RDW said it had found both the Jeep Grand Cherokee and Vitara had used "prohibited emissions strategies" that led them to emit higher levels of harmful nitrogen oxide (NOx) on the road than under testing conditions. Dutch State Secretary for Infrastructure, Stientje van Veldhoven, said in a letter to parliament she would inform prosecutors of the RDW's findings. Fiat Chrysler and Suzuki could not immediately be reached for comment. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

FCA plotting larger Jeep Renegade, Fiat 500XL

The joint development of the new Jeep Renegade and Fiat 500X goes to show what the combined efforts of the Fiat Chrysler Automobiles group can yield. But don't expect the Italian-American automaker to stop there. According to Autocar, the company is planning to base another pair of larger SUVs on the same platform. The Jeep version would take the place of the previous Compass and Patriot, slotting in between the Renegade and Cherokee. Meanwhile, the Fiat version would further bolster the Cinquecento lineup to sit alongside the 500 hatchback, 500L minivan and 500X crossover. Details remain few and far between at the moment, but they wouldn't be the extent of the growth plans for either brand. Jeep is reportedly zeroing in on a decision on the long-rumored sub-Renegade model, while also preparing to expand up-market with the return of the Grand Wagoneer. Fiat is reportedly abandoning the prospect of offering a full model line as it once did. While the 500 range will continue to form a vital part of the brand's business, it's also tipped to be going after the no-frills, bare-bones market dominated by Renault's Dacia brand. To that end, it would seek to build upon the Panda by offering a larger, but still low-cost hatchback to rival the Ford Focus and VW Golf, and succeed the discontinued Fiat Bravo, but based on the 500L's platform and built in Turkey to keep costs down. This second pillar of the Fiat brand wouldn't likely be offered in the US, however, where we'd expect the 500 line to continue representing the Italian automaker. Related Video:

China-FCA merger could be a win-win for everyone but politicians

NEW YORK — Fiat Chrysler boss Sergio Marchionne has said the car industry needs to come together, cut costs and stop incinerating capital. So far, his words have mostly fallen on deaf ears among competitors in Europe and North America. But it appears Marchionne has finally found a receptive audience — in China. FCA shares soared Monday after trade publication Automotive News reported the $18 billion Italian-American conglomerate controlled by the Agnelli family rebuffed a takeover from an unidentified carmaker from the Chinese mainland. As ugly as the politics of such a combination may appear at first blush, a transaction could stack up industrially, and perhaps even financially. A Sino-U.S.-European merger would create the first truly global auto group. That could push consolidation to the next level elsewhere. Moreover, China is the world's top market for the SUVs that Jeep effectively invented, so it might benefit FCA financially. A combo would certainly help upgrade the domestic manufacturer; Chinese carmakers have gotten better at making cars, but struggle to build global brands, and they need to develop export markets. Though frivolous overseas shopping excursions by Chinese enterprises are being reined in by Beijing, acquisitions that support the modernization and transformation of strategic industries still receive support, and the government considers the automotive industry to be strategic. A purchase of FCA by Guangzhou Automobile, Great Wall or Dongfeng Motors would probably get the same stamp of approval ChemChina was given for its $43 billion takeover of Syngenta. What's standing in the way? Apart from price (Automotive News said FCA's board deemed the offer insufficient) there's the not-insignificant matter of politics. Even as FCA shares soared, President Donald Trump interrupted his vacation to instruct the U.S. Trade Representative to look into whether to investigate China's trade policies on intellectual property. Seeing storied Detroit brands like Jeep, Chrysler, Ram and Dodge handed off to a Chinese company would provoke howls among Trump's economic-nationalist supporters. It might not play well in Italy, either, to see Alfa Romeo and Maserati answering to Wuhan instead of Turin — though Automotive News said they might be spun off separately. Yet, as Morgan Stanley observes, "cars don't ship across oceans easily," and political considerations increasingly demand local manufacture of valuable products.