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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.

New investor allows Suzuki to fend off VW

After years of legal wrangling, the long-soured partnership between Volkswagen and Suzuki looks finally to be coming out of arbitration, according to Bloomberg. As a sign of the Japanese brand's improved fortunes, hedge fund Third Point LLC recently bought an undisclosed stake in the company. The investor reported seeing a major opportunity in the successful Maruti Suzuki business in India. As an investment, the only major problem that Third Point found with Suzuki was its legal battle with VW. "The company's greatest asset is its low-cost manufacturing process for vehicles for the emerging market consumer," the fund said in a letter, according to Bloomberg. Third Point reportedly also wants a seat on Suzuki's board, despite being a minority shareholder. The alliance between Suzuki and VW goes back to late 2009. In the deal, the Japanese brand was meant to get access to cutting-edge tech, and the German firm got a helping hand towards better establishing itself in India and Southeast Asia. Things didn't go as planned, though. Less than two years later, Suzuki's boss publicly derided the deal. Eventually, the allegations started going back and forth, and the two have been working out a way to untangle practically ever since. Among the biggest issue has been how to get back the 19.9 percent stake that VW purchased. According to Bloomberg, the arbitration is now technically over. With the divorce nearly final, the two sides are just waiting on a decision on how to split things up. Suzuki may even just buy VW's stake to get the shares back.

Suzuki latest to admit to falsifying fuel economy tests

Suzuki is the latest automaker to be snagged in the broadening scandal of fuel economy falsification. Reuters reports that the head of the Japanese industrial giant admitted that it did not use the proper standards when testing its cars for fuel consumption. "The company apologizes for the fact that we did not follow rules set by the country," said CEO Osamu Suzuki (pictured bowing to reporters), as reported by Reuters. Over 2 million Suzuki vehicles are estimated to be affected. However Suzuki maintains that the company did not intentionally lie or mislead the public or government regulators about its vehicles' economy figures. Japan's transport ministry has ordered domestic automakers to resubmit those figures this week. Though Suzuki withdrew from the North American automobile market nearly four years ago, it remains the fourth largest in Japan (following Toyota, Nissan, and Honda) with particular sales strength in the Kei car segment. Like Honda and Yamaha, the company makes a variety of motorized products, including motorcycles, ATVs, and marine engines. The revelation follows hot on the heels of Mitsubishi's falsification, which broadened in scope from a few Kei cars to every vehicle it has sold in Japan stretching as far back as 1991. The controversy lead to Nissan taking control of a third of Mitsubishi's stock. Prior to that, and on the other side of the world, Volkswagen admitted to engineering its diesel vehicles to cheat emissions tests. Government regulators around the world have launched investigations into numerous other automakers to see how much farther the growing epidemic of falsifying environmental credentials can spread. Related Video: