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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.

Volkswagen rules out Eos successor

When Volkswagen introduced the Eos back in 2006, hard-top convertibles were all the rage – in North America, in Europe and around the world. But the trend, billed at the time as the best of both worlds, has long since subsided, leading to VW axing the Eos several months ago. And don't count on it getting a successor at some point down the line, either. At the Detroit Auto Show earlier this week, VW R&D chief Heinz-Jakob Neusser told Autocar that the Eos is down for the count. In fact it is "maybe the first model we take out of the market" in a reversal of the momentum that has seen the German automaker expand its lineup incrementally over the past several years – although the Chrysler-built Routan minivan was also canceled around the same time. The place the Eos occupied in VW's North American lineup is largely being taken by the more charismatic Beetle Convertible, and in Europe and other markets by the Golf Cabriolet that's still based on the previous-generation hatchback. The Eos, however, isn't the only hard-top convertible withdrawn from the market in recent years. Tin-top cabrios like the Lexus IS and SC, Cadillac XLR, Chrysler 200, Pontiac G6 and Volvo C70 have all gone the way of the dodo – as have Euro-market coupe-convertibles versions of models like the Ford Focus, Opel Astra, and Peugeot 207. The arrival of the Buick Cascada just goes to show that soft-roofed convertibles have won out, particularly as far as four-seat cabrios are concerned. The one notable exception where folding hard-tops are still gaining traction is among mid-engined exotic supercars like the Ferrari 458 and McLaren 650S, both of which opted for solid folding roofs instead of fabric ones. We've yet to see, however, which approach Lamborghini will take with the Huracan Spyder or Audi will with the next-generation R8, the predecessors of both of which featured fabric roofs.

Germany says nein to EU ban on new fossil-fuel cars from 2035

BERLIN (Reuters) - Germany's government will not agree to European Union plans to effectively ban the sale of new cars with combustion engines from 2035, Finance Minister Christian Lindner said on Tuesday. In its bid to cut planet-warming emissions by 55% by 2030 from 1990 levels, the European Commission has proposed a 100% reduction in CO2 emissions from new cars by 2035. That means it would be impossible to sell combustion engine cars from then. European Parliament lawmakers backed the proposals this month, before negotiations with EU countries on the final law take place. Speaking at an event hosted by Germany's BDI industry association, Lindner said there would continue to be niches for combustion engines so a ban was wrong and said the government would not agree to this European legislation. Lindner, a member of the pro-business Free Democrats, which shares power with the Social Democrats and Greens, said Germany would still be a leading market for electric vehicles. (Reporting by Christian Kraemer; Writing by Madeline Chambers; Editing by Miranda Murray and Edmund Blair) Green Government/Legal Green Audi BMW Mercedes-Benz Volkswagen Opel SEAT Skoda