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Fiat/PSA's dominance in small vans hangs up EU's merger approval

BRUSSELS — EU antitrust regulators are concerned about Fiat Chrysler and Peugeot / PSA's combined high market share in small vans and may require concessions to clear their $50 billion merger, people familiar with the matter said. The companies, which are seeking to create the world's fourth biggest carmaker, were told of the European Commission's concerns last week. If Fiat and PSA fail to dispel the European Commission's doubts in the next two days and subsequently decline to offer concessions by Wednesday, the deadline for doing so, the deal would face a four-month-long investigation. The EU competition enforcer, which has set a June 17 deadline for its preliminary review, declined to comment. Fiat was not immediately available for comment while PSA had no immediate comment. Hiving off overlapping businesses, usually a regulatory demand to ensure more competition, could prove tricky for the carmakers because of the technicalities. Fiat and PSA are looking to merge to help offset slowing demand and shoulder the cost of making cleaner vehicles to meet tougher emissions regulations. The deal puts under one roof the Italian carmaker's brands such as Fiat, Jeep, Dodge, Ram, Maserati and the French company's Peugeot, Opel and DS. Related Video: Government/Legal Chrysler Dodge Fiat Jeep Maserati RAM Citroen Opel Peugeot

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.

Fires, deaths continue after Jeep fuel tank recall

As Kayla White slowed her SUV behind two other cars to exit a suburban Detroit freeway on Veterans Day, it was rammed from behind by a Cadillac STS. Her red 2003 Jeep Liberty bounced off a Nissan in front of it, rolled onto its side and exploded in flames. Other drivers ran to help but were forced back by the heat. Firefighters arrived in just three minutes but were too late. White, a 23-year-old restaurant hostess who was eight months pregnant, died of burns and smoke inhalation. White is one of more than 70 people killed in fires involving older Jeeps with plastic fuel tanks mounted behind the rear axle. Fiat Chrysler, which makes Jeeps, recalled 1.56 million of them in June 2013 under pressure from US safety regulators. But only 12 percent of the SUVs have been repaired in the 18 months since the recall, a much slower pace than usual. And White's Jeep was not among those fixed. Last week, prosecutors charged the Cadillac driver with committing a moving violation that caused a death. But safety advocates and the lawyer for White's family say the blame belongs as much, if not more, on Chrysler and an auto-industry safety system that moves too slowly to prevent tragedy. The rear-mounted tanks have little structure to protect them if struck from behind, making them susceptible to punctures and fires. Moving the gas tank in front of the axle would be expensive and difficult. So Chrysler's remedy involved installing trailer hitches on the rear of the Jeeps as an extra layer of protection. Government testing showed the hitches protected the tanks in crashes up to 40 mph when stationary Jeeps were hit from behind. But at higher speeds, they wouldn't help. White tried to get the repair done a few weeks before her death but was told by a Jeep dealer that parts weren't available, according to Gerald Thurswell, her family's lawyer. He wouldn't identify the dealership, and his contention could not be independently verified by The Associated Press. Thurswell contends the gas tank ruptured, spilling fuel that touched off the fire. A Chrysler spokesman expressed sympathy to White's family but said the company had no written proof that she asked a dealer about the recall. Two crash reconstruction experts interviewed by the AP say gas wouldn't have spilled from White's Jeep if the tank had been mounted in front of the rear axle. Both say a hitch might have prevented the tank from being damaged, but because both vehicles were in motion, neither expert could say for sure.