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Feds sue Fiat Chrysler, accuse it of cheating on diesel emissions

WASHINGTON - The US government has filed a civil lawsuit accusing Fiat Chrysler Automobiles NV of using software to bypass emission controls in diesel vehicles. The Justice Department suit, filed in US district court in Detroit, is a procedural step that may ramp up pressure on Fiat Chrysler. The suit could ultimately help lead to a settlement, as in an earlier probe of rival Volkswagen AG that will cost VW up to $25 billion, but which affected a much larger number of vehicles. VW admitted to intentionally cheating while Fiat Chrysler denies wrongdoing. It did not immediately comment on Tuesday. US-listed Fiat Chrysler shares were down 2.9 percent at $10.44. The suit also names Fiat Chrysler's unit V.M. Motori SpA, which designed the engine in question. Reuters reported last week the Justice Department and EPA have obtained internal emails and other documents written in Italian that look at engine development and emissions issues that raise significant questions. The investigation has scrutinized VM Motori. FCA acquired a 50 percent stake in VM Motori in 2010 and the remainder in October 2013. The lawsuit asserts the Italian-American automaker placed undeclared "defeat devices," or auxiliary emissions controls, in 2014-2016 Fiat Chrysler diesel vehicles that led to "much higher" than allowable levels of nitrogen oxide, or NOx pollution, which is linked to smog formation and respiratory problems. The suit seeks injunctive relief and unspecified civil penalties. EPA said in January the maximum fine is about $4.6 billion. In January, EPA and California accused Fiat Chrysler of illegally using undisclosed software to allow excess diesel emissions in 104,000 U.S. 2014-2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks. Fiat Chrysler said on Friday it plans to update software that it expects will resolve the concerns of U.S. regulators about excess emissions in those vehicles. The January notice was the result of regulators' investigation of rival Volkswagen, which prompted the government to review emissions from all other passenger diesel vehicles. Volkswagen admitted in September 2015 to installing secret software allowing its cars to emit up to 40 times legal pollution levels. In total, VW has agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, states and dealers and offered to buy back about 500,000 polluting US vehicles.

Did Ram outsell Chevy Silverado for first time in history last month?

Recently released automotive March sales figures point to a major shakeup in the pickup world. Last month, Ram's trucks overtook the Chevrolet Silverado to become the second-best selling vehicle in the segment for the first time ever.
The Ram pickups outsold the Silverado by 285 units in March. Chrysler shifted 42,532 trucks for the month compared to 42,247 for the Chevrolet fullsize. According the Allpar, this is the first time either Dodge or Ram's pickups have outsold Chevy in a month, and the Bowtie has held down the second place spot in the pickup market since 1978 when Ford took over the top spot. The F-Series remains the market's king, with 70,940 sales in March and 173,358 sold since January.
The results may only be a blip. From January through March, Ram has sold 96,906 trucks versus 107,757 for the Silverado. One month of sales figures isn't enough to call this a trend, but it's certainly an interesting data point.

NHTSA probing Ram recall pace, communication

The National Highway Traffic Safety Administration has announced that it's looking into Chrysler Group's handling of a pair of recalls affecting roughly one million Ram pickup trucks. Reuters is reporting that the regulatory agency is focusing on the availability (or lack thereof) of parts and "poor communications" from the automaker in its investigation.
"Customers have been advised in accordance with the regulations governing recalls," Chrysler spokesman Eric Mayne told Reuters via email. "We are continually replenishing our supply of replacement parts. Chrysler Group regrets any inconvenience our customers may have experienced."
NHTSA disagrees, arguing that the recalls, which affect 972,000 trucks from 2003 to 2012, are being delayed by the lack of parts.