EPA on FCA

[41chevy]

https://www.epa.gov/newsreleases/epa-notifies-fiat-chrysler-clean-air-act-violations

 

Reuters

EPA accuses Fiat Chrysler of excess diesel emissions

By David Shepardson and Bernie Woodall | NEW YORK/DETROIT

The U.S. Environmental Protection Agency on Thursday accused Fiat Chrysler Automobiles NV of illegally using hidden software to allow excess diesel emissions to go undetected, the result of a probe that stemmed from regulators' investigation of rival Volkswagen AG.

FCA shares plummeted as the maximum fine is about $4.6 billion. The EPA action affects 104,000 U.S. trucks and SUVs sold since 2014, about one-sixth the vehicles in the Volkswagen case.

The EPA and California Air Resources Board told Fiat Chrysler it believes its undeclared auxiliary emissions control software allowed vehicles to generate excess pollution in violation of the law and each issued notices of violation.

The U.S. Justice Department is investigating, Fiat Chrysler said Thursday. New York Attorney General Eric Schneiderman said in a statement he is "deeply troubled" by the EPA findings and "will investigate the claims against Fiat Chrysler and stands ready to work with our state and federal partners."

Fiat Chrysler Chief Executive Sergio Marchionne angrily rejected the allegations at a hastily-assembled conference call with reporters, saying there was no wrongdoing and the company never attempted to create software to cheat emissions rules by detecting when the vehicle was in test mode.

He characterized the dispute as whether the automaker had completely disclosed software that protects the engine, adding the company was planning updated software to address EPA concerns.

He said the EPA and the company could have settled the issue in "a more efficient way" without the EPA announcement, and he said "I'm really pissed off" about reports that equate FCA's issues with VW's.

"The way that it has been described, I think, has been unfair to FCA, and that is the thing that disturbs me most," Marchionne said.

He also suggested regulators had a "belligerent" view of automakers. "We don't belong to a class of criminals," he said. "We're not trying to break the bloody law."

The company has no plans to stop selling 2016 U.S. diesel models.

EPA has reviews ongoing of other automakers' emissions systems, but it is not clear if they have found any additional wrongdoing.

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 undisclosed software results in increased emissions of nitrogen oxides (NOx).

Cynthia Giles, an EPA official, said Fiat Chrysler had an obligation to disclose the "illegal software" but has not decided whether to label them "defeat devices."

The EPA said it found at least eight undisclosed pieces of software that can alter how a vehicle emits air pollution. Fiat Chrysler had recalled vehicles for one of the undisclosed software.

By contesting the charge, FCA will push the case into the administration of President-elect Donald Trump. It is not clear how Trump’s EPA will handle this or similar issues. Trump has nominated Oklahoma Attorney General Scott Pruitt, a critic of federal environmental regulation, to lead EPA.

Efraim Levy, analyst with CFRA, said FCA stands to "get a fresh start with the Trump administration."

 

Related Coverage

• EU says expects answers from Italy over alleged Fiat emissions cheating
• Fiat Chrysler vehicles in EPA report are not road tested or sold in Italy: ministry

U.S.-listed shares were last down 10 percent, cutting their earlier losses. Milan-listed shares closed down 16 percent, weighing on European stock markets.

The EPA announcement comes amid closer scrutiny of automakers after Volkswagen AG (VOWG_p.DE) admitted to cheating diesel emissions tests in 580,000 U.S. vehicles.

In 2015, EPA said it would review all U.S. diesel vehicles following an admission from Volkswagen that it installed software in cars allowing them to emit up to 40 times legally permissible level of pollution.

On Wednesday, Volkswagen (VOWG_p.DE) agreed to pay $4.3 billion in criminal and civil fines and plead guilty to three felonies for misleading regulators and selling polluting vehicles.

Fiat Chrysler could face fines of $44,539 per vehicle if it is proven that it violated emissions rules.

European regulators have also raised questions about Fiat Chrysler diesels.

Last fall, Germany wrote a letter to the European Commission accusing FCA of using an illegal device to switch off exhaust treatment systems in diesel engines in Fiat and Jeep vehicles sold in Europe.

 

(Reporting by David Shepardson in New York and Bernie Woodall in Detroit; Additional reporting by Nick Carey in Chicago, Agnieszka Flak in Milan and Giles Guillaume in Paris; Editing by Nick Zieminski)

[kscarbel2]

Sergio Marchionne is an acquaintance, and a super human being. He is NOT the likes of Volkswagen's Ferdinance Piech who without doubt gave final approval of Volkswagen's cheating software.

[kscarbel2]

FCA accused by EPA of failing to disclose software allowing excess diesel emissions

Automotive News  /  January 12, 2017

The EPA has accused Fiat Chrysler Automobiles (FCA) of failing to disclose software in 104,000 diesel pickups and SUVs that allows them to exceed pollution limits.

The EPA stopped short of calling the software in 2014-16 Jeep Grand Cherokee and Ram 1500s a “defeat device” but said the carmaker failed to disclose its use.

FCA said it meets all applicable regulatory requirements and will work with President-elect Donald Trump’s administration to contest the allegations.

The EPA and California Air Resources Board (CARB) told FCA they believe its auxiliary emissions control software allowed vehicles to generate excess pollution in violation of the law. 

"Failing to disclose software that affects emissions in a vehicle’s engine is a serious violation of the law," said Cynthia Giles, assistant administrator for EPA’s office of enforcement and compliance assurance, in a statement. "We continue to investigate the nature and impact of these devices. All automakers must play by the same rules, and we will continue to hold companies accountable that gain an unfair and illegal competitive advantage.”

She added: “As regard to penalties, the notice of violation describes the civil penalty provisions of the law that may apply. So the statue provides for civil penalties of up to $44,539 per vehicle sold for the violations that are alleged in the N.O.V.”

The maximum fine, in theory, would be about $4.6 billion.

CARB Chairman Mary Nichols said: "Once again, a major automaker made the business decision to skirt the rules and got caught." 

The U.S. Justice Department is investigating, Fiat Chrysler said Thursday.

FCA CEO Sergio Marchionne, during a call with journalists, angrily denied the company was cheating and has been in talks with EPA and made significant disclosures of documents.

"We have done nothing that is illegal," he said. "There was never any intent of creating conditions that were designed to defeat the testing process. This is absolute nonsense."

He characterized the dispute as whether the automaker had completely disclosed software that protects the engine, adding the company was planning updated software to address EPA concerns.

He said the EPA and the company could have settled the issue in "a more efficient way" without the EPA announcement, and he said "I'm really pissed off" about reports that equate FCA's issues with VW's.

"The way that it has been described, I think, has been unfair to FCA, and that is the thing that disturbs me most," Marchionne said. He also suggested regulators had a "belligerent" view of automakers.

"There's not a guy in this (company) who would try something as stupid as (cheating on diesel tests) ... We don't belong to a class of criminals." 

Official statement

FCA said in a statement: "FCA US is disappointed that the EPA has chosen to issue a notice of violation with respect to the emissions control technology employed in the company's 2014-16 model-year light-duty 3.0-liter diesel engines. FCA US intends to work with the incoming administration to present its case and resolve this matter fairly and equitably and to assure the EPA and FCA US customers that the company's diesel-powered vehicles meet all applicable regulatory requirements."

An automaker can use an auxiliary emissions control device in limited circumstances to protect the engine from damage, but it must be declared to regulators.

FCA's U.S.-listed shares initially plunged as much as 18 percent on the news. At closing, the shares were down 10 percent to $9.95. 

The EPA's announcement comes amid rising scrutiny by the agency of automaker emissions after Volkswagen AG admitted to cheating diesel emissions tests in 580,000 U.S. vehicles.

EPA has reviews ongoing of other automakers' emissions systems, but it is not clear if they have found any additional wrongdoing. In April, Daimler AG said the U.S. Justice Department had asked the carmaker to investigate its emissions certification process for vehicles including its Mercedes brand.

The EPA has for months declined to certify Fiat Chrysler's 2017 diesel vehicles for sale in the U.S., but the automaker has continued to sell 2016 diesel models.

In September 2015, EPA said it would review all U.S. diesel vehicles following an admission from VW that it installed software in cars allowing them to emit up to 40 times legally permissible level of pollution.

The EPA has extensively investigated the vehicles and Fiat Chrysler has turned over significant documents as part of the probe, two people briefed on the matter said.

The probe covers FCA's diesel trucks and SUVs from the 2014-16 model years.

[41chevy]

1 hour ago, kscarbel2 said:

Sergio Marchionne is an acquaintance, and a super human being. He is NOT the likes of Volkswagen's Ferdinance Piech who without doubt gave final approval of Volkswagen's cheating software.

I feel it is a witch hunt by the U.S. EPA and the EU counterpart and are only out for the fines and the "good feeling" of publicly damaging any company they feel like going after.   Paul

[carlotpilot]

37 minutes ago, 41chevy said:

I feel it is a witch hunt by the U.S. EPA and the EU counterpart and are only out for the fines and the "good feeling" of publicly damaging any company they feel like going after.   Paul

exactly             so much money has been wasted on pie in the sky bs past 8 yrs. they will try anything to get some of it back

Edited January 13, 2017 by carlotpilot

[kscarbel2]

Some feel, the current and oncoming regulations are escalating by design to force the extinction of the internal combustion engine by a planned date.

Likewise, all the major country governments are head-over-heels pushing for autonomous driving ASAP, even though the population is NOT asking for it. No government has asked its people if they want to be removed from driving. Autonomous driving is being rammed down everyone's throat.

[Dirtymilkman]

Our EPA is so brilliant. The government bails Chrysler out with billions, Fiat gets it for free, then the government wants to fine them billions. Makes sense to me. 

[41chevy]

11 hours ago, Dirtymilkman said:

Our EPA is so brilliant. The government bails Chrysler out with billions, Fiat gets it for free, then the government wants to fine them billions. Makes sense to me. 

Well, they certainly don't want FCA "wasting billions of dollars" on manufacturing plants, up grades, hiring American workers and boosting the economy do you. (anti trump?? !)     

[Brocky]

It is interesting that all these criminal indictments are coming out in the 2 weeks before Obumma leaves???

BUT he could not find anything WRONG with Hildabrutes conduct???

Edited January 14, 2017 by Brocky

[kscarbel2]

Italy Rejects Germany’s Request on Fiat Cars in Months-Long Feud

Bloomberg  /  January 14, 2017

Italy rejected Germany’s request to look closer at Fiat Chrysler Automobiles NV’s vehicles to ensure they meet European emission rules, as the months-long feud between the countries over the issue escalated.

Italian Deputy Transport Minister Riccardo Nencini said the “insistence of the German government after the responses given by the Italian ministry is incomprehensible.” Italy’s government is collaborating with the European Commission, Nencini said in a statement late Friday after the EU’s executive arm said German authorities have expressed serious concerns on emissions of the Fiat 500x.

“We have repeatedly asked Italian authorities to come forward with convincing answers as soon as possible,” the EU Commission said in an e-mailed statement Friday.

Germany’s KBA motor vehicle authority has carried out investigations on several Fiat vehicles, German Transport Ministry spokeswoman Svenja Friedrich told reporters at a regular government press conference on Friday. “The result was that a considerable reduction of the exhaust gas cleaning function occurs after a certain time. We are still of the opinion that these are unlawful switch-off [so-called "defeat devices"] facilities.” 

The German Transport Minister wants the EU Commission to intervene in the feud by setting up consultations to find a resolution to disagreements over test results. “The EU Commission is now doing exactly what has been demanded for a long time: it’s talking again with the Italians,” Friedrich said.

Under EU rules, Italy is responsible for testing Fiat because the automaker’s regional operations are based in the country.

German Transport Minister Alexander Dobrindt said in May that he doubts Fiat’s cars are in line with rules for emissions certification.

Italian Transport Minister Graziano Delrio replied in a Bloomberg interview a month later that the carmaker’s vehicles were “absolutely fine” and the company showed “maximum transparency.”

[kscarbel2]

FCA working to resolve U.S. diesel emissions issue

Reuters  /  March 7, 2017

Fiat Chrysler Automobiles is still trying to win U.S. approval to sell 2017 diesel models as the U.S. government decides whether to take legal action, CEO Sergio Marchionne said on Tuesday.

In January, the EPA and the California Air Resources Board (CARB) accused the automaker of illegally using hidden software to allow excess diesel emissions from 104,000 U.S. trucks and SUVs. The EPA has refused to grant Fiat Chrysler approval to sell 2017 diesel models.

"We have been dealing with the EPA and CARB, we have engaged legal counsel. The only thing I can tell you is that we continue to work with the agencies to try and resolve this," Marchionne told reporters at the Geneva auto show.

"We continue to offer full cooperation to the agency to try get this issue resolved. I think my main objective now is to get certification for the 2017 models," he said. 

Last week, the U.S. Justice Department told a judicial panel in a previously unreported filing that the government "continues to consider whether to commence judicial proceedings in connection with the violations alleged" by the EPA.

The filing said FCA's actions "may have violated other federal laws as well. The United States may well become involved in litigation with FCA regarding this matter to vindicate important environmental and other federal interests." 

The EPA is continuing to "evaluate certification of new model year 2017 vehicles," the filing said.

Marchionne said Tuesday if the automaker wins certification for the 2017 models, then "I think we can take that solution and apply it back to the 2014's to 2016 cars."

Marchionne said he did not raise the company's diesel emissions issue with President Donald Trump when he met with auto CEOs in January.

Fiat Chrysler said it faces at least nine civil lawsuits in five states related to the emissions issue. A judicial panel will hold a March 30 hearing to decide whether the cases should be consolidated before a single judge.

Last week, FCA disclosed that the U.S. Securities and Exchange Commission and some state attorneys general are investigating emissions issues.

Reuters reported the Justice Department has been investigating FCA for more than six months.

New York Attorney General Eric Schneiderman issued a subpoena to FCA and is leading a multi-state investigation.

Marchionne in January rejected the EPA's allegations, saying there was no wrongdoing and the company never attempted to create software to cheat emissions rules.

The EPA announcement followed closer scrutiny of automakers after Volkswagen AG admitted to cheating diesel emissions tests in 580,000 U.S. vehicles.