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US prepares to sue Fiat Chrysler over diesel emissions testing

NEW YORK - The Justice Department plans to file a civil lawsuit against Fiat Chrysler Automobiles NV over excess diesel emissions as early as this week if no agreement is reached with the Italian-American automaker, two sources briefed on the matter said on Wednesday. The Environmental Protection Agency in January accused FCA of illegally using undisclosed software to allow excess diesel emissions in about 104,000 cars and SUVs, the result of a probe that stemmed from regulators' investigation of rival Volkswagen AG. The EPA and California Air Resources Board have been in talks with FCA about the excess emissions and whether the agencies would approve the sale of 2017 FCA diesel models. A federal judge in California has set a May 24 hearing on a series of lawsuits filed by owners of vehicles against Fiat Chrysler and the Justice Department is expected to file its action by then if no agreement is reached. FCA said on Wednesday it believed that any litigation would be "counterproductive" to ongoing discussions with the EPA and California Air Resources Board. The company added that "in the case of any litigation, FCA US will defend itself vigorously, particularly against any claims that the company deliberately installed defeat devices to cheat U.S. emissions tests." The Justice Department took the same procedural step in early 2016 against Volkswagen, nearly four months after the German company admitted using software to emit excess diesel emissions in nearly 500,000 vehicles. The Justice Department has had an ongoing criminal investigation into FCA's conduct since last year, Reuters reported in January. The probe has turned up internal emails written in Italian and other documents about engine development and emissions issues, sources briefed on the probe said. U.S. regulators said FCA failed to disclose engine management software in 104,000 U.S. 2014-2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3.0-liter diesel engines. The European Commission has launched legal action against Italy for failing to respond to allegations of emission-test cheating by Fiat Chrysler in a procedure that could lead to the country being taken to court. The EPA has said the maximum possible fine against FCA could be $4.6 billion. In February, FCA said it had received requests for information and subpoenas from U.S. federal and state authorities, including the Securities and Exchange Commission, for diesel issues.

2015 VW e-Golf coming to ZEV states for $35,445* this November

Is $6,465 too much to get someone thinking about buying a Nissan Leaf to opt for the Volkswagen e-Golf instead? That's the price difference between the current EV sales champion, which now starts at $28,980, and the just-announced price for the e-Golf, which will sell for $35,445 in the US when it arrives in about ten states (basically, the ZEV states that follow California's lead in zero-emission vehicle rules) this November and will qualify for the federal tax credit of up to $7,500. VW says that the extra money will get you "the most versatile electric vehicle in its class." There is only one trim line, the SEL Premium, which will be the first VW in the US with all-LED headlights. The car's powertrain numbers pretty much match the Nissan Leaf, though. The e-Golf has a 24.2-kWh lithium-ion battery (the Leaf has a 24-kWh pack) and a 115-hp, 199-pound foot electric motor (107 hp,187 lb-ft in the Leaf). The e-Golf's official EPA numbers are not yet available, but VW says it will have an "average range between 70 and 90 miles." The Leaf has an official EPA range of 84 miles. The e-Golf has a better onboard charger – 7.2 kW vs. 3.6 or 6.6, depending on your Leaf's options – and has SAE Combo fast charging capability as standard. VW is also working with 3Degrees to offset all of the emissions "created from production, distribution and charging of the e-Golf for up to approximately 36,000 miles of driving." VW also announced prices for its lightly facelifted 2015 Jetta today. The base model, the 2.0-liter S with a manual transmission, starts at $17,325 while the top-of-the-line model, the Hybrid SEL Premium, will set you back at least $31,670. The lowest-cost TDI is the S manual, which starts at $21,640 and features VW's new 2.0-liter diesel four. A new limited-edition 1.8 Sport model with a firmer suspension, tinted taillamps and rear spoiler starts at $20,895. All VW prices listed exclude VW's *$820 destination charge and you can find all the details on trim lines in the press releases below.

VW's credit ratings could take a beating

In addition to a significant drop in its share price already, Volkswagen's diesel emissions scandal is continuing to have major financial repercussions on the German automaker. According to The Detroit News, credit rating agencies like Standard & Poor's and Moody's changed their forecasts on the company to negative, and Fitch has considered doing so, as well. Volkswagen appears to have the money to cover the costs of this ordeal, but the agencies question the effect that this has in the long term. "Moody's concern, however, is that Volkswagen's alleged breach of US environment rules and, especially, the process by which that breach occurred, will have an adverse effect on its reputation and credibility within the global passenger car markets," the company wrote in a note to investors, according to The Detroit News. VW has initially set aside $7.25 billion to fix things, but the potential shakeup of top executives has caused some investor uncertainty, too. The actual costs for VW to deal with this scandal are still unknown. In the US, the Department of Justice has begun a criminal investigation, and with other automakers the government has settled for $900 million against General Motors and $1.2 billion against Toyota. Attorneys general in 29 states have started looking deeper, according to The Detroit News, and regulators in Europe, South Korea, and Canada have commenced their own probes, as well. Related Video: