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FCA under investigation for fraud by FBI, SEC, and DOJ

The US Justice Department is currently in the initial stages of investigating Fiat Chrysler Automobiles for fraud, according to two anonymous sources that spoke with Bloomberg. According to the unnamed sources, prosecutors are examining whether FCA violated US securities laws. As part of a coordinated investigation into FCA's sales reporting practices, investigators from the Federal Bureau of Investigation and the Securities and Exchange Commission visited the automaker's field staff in their offices and homes earlier this month, reports Automotive News. According to an anonymous source that spoke to Automotive News, federal staff attorneys visited FCA's US headquarters in Auburn Hills, MI on July 11. The unnamed source told the outlet that employees were advised to seek counsel before speaking with investigators. Investigators also visited the automaker's offices in Dallas, California, and Orlando, the unnamed source told Automotive News. The investigation comes after FCA claimed it had recorded the best month of sales in the US in the automaker's history in December with a total of 217,527 vehicles sold, reports Bloomberg. The claim now seems untrustworthy. According to a previous report from Automotive News, a Chicago-based dealership group filed a lawsuit against FCA earlier this year. The suit accused the automaker of paying dealers to fake new-vehicle sales. At the time, the automaker claimed the allegations were baseless and had no merit. After the lawsuit, FCA started to add an extended disclaimed at the end of its monthly sales reports, according to Automotive News. In a statement, FCA claimed that the automaker is cooperating with the SEC investigation and pointed out that it records "revenues based on shipments to dealers and customers, not on reported vehicle unit sales to end customers." We'll have more on the investigation as it unfolds. Related Video: News Source: Automotive News-sub.req., Automotive News-sub.req, Bloomberg, GIUSEPPE CACACE/AFP/Getty Images Government/Legal Chrysler Fiat FCA USDOJ investigation

Taking a truly driverless ride in Waymo's Chrysler Pacifica

Today was a first for me: I drove in a fully autonomous vehicle on roads without anyone behind the wheel. They weren't public roads, but they did have intersections, other vehicles, pedestrian traffic, cyclists and more, and the car managed a fairly long route without any human intervention — and without any cause for concern on my part. I've done a lot of self-driving vehicle demos, including in Waymo's own previous-generation Lexus test vehicles, so I wasn't apprehensive about being ferried around in Waymo's Chrysler Pacifica minivan to begin with. But the experience still took me by surprise, in terms of just how freeing it was once it became apparent that the car was handling things all on its own, and would continue to do so safely regardless of what else was going on around it. Waymo's test track at Castle (more on that facility here) included multiple intersections with traffic lights, a roundabout, cars stopped on the shoulder, crossing foot band cycle traffic and more. Even if these were staged, they'd be hard to replicate in exact detail every time, so despite the fact that Waymo clearly had more control here than they would out in the real world, the driving experience was still impressive. In particular, one event stuck with me: A squirrel (or other small rodent, I'm no expert on the fauna of Northern California) darted out quickly in front of the car, before turning back off the road – but the vehicle perceptibly slowed in case it needed to avoid it. Barring an incredibly lifelike animatronic, this isn't something Waymo could've planned for. Regarding how it actually works, once in the vehicle and buckled up, a rider taps a button to start the ride, and then displays mounted on the backs of the front seats show a visualization of what the car's sensors see, but selectively simplified and redesigned to draw focus to things that riders find important, and to reassure them about the system's competence and ability to spot all the key variables on the road. This is essentially the same car driving riders around Chandler, in Phoenix, where the current Waymo pilot is operating. It's still essentially a stock Pacifica van, with a premium trim upgrade, but included features in that vehicle, including the many USB ports for charging located throughout, the dual screens mentioned above on the seat backs, and the rear cabin AC and climate controls all make it particularly well suited to the task of putting the rider first.

Jeep and Ram could be spun off from FCA, says Marchionne

Jeep is surely the biggest single feather left in the cap of the Fiat Chrysler Automobiles portfolio. Under Sergio Marchionne's leadership, Jeep went from fewer than 500,000 annual sales in 2008 to 1.4 million in 2016, and is on track for 2 million by 2018. Add in the brand's legacy, status as one of the most recognizable nameplates in the world, and rabid fan base, and Jeep has extraordinary monetary value to its parent company. Investors and analysts have certainly noticed Jeep's inherent value. According to The Detroit Free Press, Morgan Stanley's Adam Jonas asked FCA chief Sergio Marchionne if he would ever consider spinning Jeep and Ram, FCA's dedicated truck brand, into a separate corporate entity, and he responded with a simple "Yes." Jonas estimated Jeep's worth in January of this year at $22 billion. Ram was valued at $11.2 billion. Marchionne has a history of spinning off brands while keeping them part of FCA's corporate umbrella. The most noteworthy example of this value maximization was with Ferrari, which now trades on the New York Stock Exchange and rakes in $3.4 billion in annual revenue and close to $435 million in net income, reports the Free Press. Marchionne still serves as chairman and CEO of Ferrari, and Fiat heir John Elkann owns 22 percent of the Italian marque's shares. Even if the offloading of Jeep and Ram into a separate entity would amount to little more than a profit-driven ownership change on paper, it would be huge news to the brands' loyal fanbases. In any case, such a move would likely take years to actually happen and probably wouldn't mean much at all to the products that Jeep and Ram produce. In other words, Jeep fans can keep the pitchforks in the shed ... for now. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.