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The EPA has alleged that FCA installed undisclosed emissions software in about 100k Ram and Jeep diesel models [UPDATE]

Update: The text has been updated with official information from the EPA given in a press release and a conference call. Although an initial report from Reuters said the EPA will accuse Ram and Jeep of using emissions defeat devices today, that isn't quite the case. In a press release and a conference call, the EPA stated that the notice of violation sent to FCA is for the installation of eight undisclosed auxiliary emissions control devices on 2014 to 2016 Jeep Grand Cherokee and Ram 1500 models with the 3.0-liter turbodiesel V6. The violation applies to about 104,000 vehicles in total. The agency also explained that auxiliary emissions controls on vehicles are not necessarily illegal, but installing them without disclosing them to the EPA when having the vehicle certified is. Though this initial notice of violation is for installing undisclosed software, the EPA may soon also classify these emissions devices as defeat devices, as it did with the software Volkswagen used. Depending on the outcome of the investigation, there could be fines of up nearly $45,000 per vehicle involved in the notice of violation. The agency revealed that the software alters how the emissions system performs in certain situations. In controlled testing, the vehicles are compliant, but in conditions such as high speed operation, the EPA found the vehicles would produce much higher levels of NOx emissions. The EPA is continuing to investigate, and is waiting for FCA to explain why these emissions control devices are not cheating or defeat devices. In an official statement, FCA stated it is looking forward to explaining that the software does not constitute a defeat device, and has also proposed software updates to achieve compliance. During the conference call, EPA representatives also noted that the vehicles are still safe and legal to be driven, and that owners do not need to take any action yet regarding their cars. It should be noted there is no stop-sale on current models at this time. Additionally, 2017 versions of the 3.0-liter diesel FCA vehicles have not been emissions certified yet. Related Video: News Source: Reuters, Environmental Protection Agency Government/Legal RAM

Fiat Chrysler's profit boosted by Ram and Jeep in North America

MILAN/DETROIT — Fiat Chrysler took the market by surprise by sticking to its full-year profit guidance on Wednesday after a strong performance from its Ram pickup truck in North America helped it defy an industry slowdown. Chief Executive Mike Manley, in FCA's first earnings release since a failed attempt to merge with France's Renault, also left the door open to that or other deals. "We are open to opportunity," Manley said on a call with analysts. "I have no doubt why there still would be interest in it," he added, when pressed on what it would take to revive talks with Renault. Manley declined to comment further. FCA last month abandoned its $35 billion merger offer for Renault, blaming French politics for scuttling what would have been a landmark deal to create the world's third-biggest automaker. Manley said a merger was not a must-have and Fiat Chrysler's business plan was strong. The company said it remained confident its adjusted earnings before interest and tax (EBIT) would top last year's 6.7 billion euros ($7.5 billion). Given disappointing forecasts from other automakers this earnings season, FCA's confirmation of the outlook sent Milan-listed shares in the Italian-American automaker, whose other brands include Jeep, up over 4%. A broad-based auto sales downturn has rattled the sector, forcing FCA's competitors — including Renault, Daimler and Aston Martin — to cut their sales forecasts after second-quarter results, while U.S. carmaker Ford gave a weaker-than-expected 2019 profit outlook. Japan's Nissan, a long-term partner of Renault, said it would cut 12,500 jobs by 2023 after its earnings collapsed. In the second quarter FCA's adjusted EBIT totaled 1.52 billion euros, versus analysts' expectations of 1.43 billion euros, according to a Reuters poll. FCA's U.S. shipments were down 12% in the second quarter but the group said that the successful performance of its Ram brand resulted in an enhanced share of the large pickup truck market of 27.9%, up 7 percentage points from last year. Adjusted EBIT margin in North America rose to 8.9% from 6.5% in the first quarter, thanks to strong demand for the heavy-duty Ram and the new Jeep Gladiator pickup. Chief Financial Officer Richard Palmer also said FCA expected to report up to 10% margins in the region in both the third and fourth quarters.

Chrysler recalls AWD 300, Charger, Ram 1500 over ZF transmission

What do the Chrysler 300, Dodge Charger and Ram 1500 all have in common? Yes, they're all Chrysler products, and two of them are based on the same platform. And we're sure you could find more similarities between them all, but the common trait we're looking at here is that, while they all come standard in rear-drive form, they're also available with all-wheel drive. And it's the transmission in those models that's the subject of the latest recall notice issued by the National Highway Traffic Safety Administration.
The output shaft on the eight-speed automatic transmission supplied by ZF to Chrysler for the AWD versions of the 300, Charger and Ram 1500 is apparently prone to fracture. That in the end could leave the vehicle without power and could, according to the NHTSA investigation, increase the chance of a crash. The vehicle could also roll away if even if left in Park without the handbrake applied.
That's why Chrysler is calling in 4,194 examples of those three models from the 2013 model year. Dealers will be responsible for inspecting the transmissions and, where necessary, replace the entire unit. See the full recall notice below for all the details.