Tag: DOJ

By on April 26, 2019

That headline was unavoidable, by the way. On the same day Ford Motor Company released a better than expected first-quarter earnings report, it also revealed the Justice Department has opened a criminal investigation into its emissions certification process — a probe that could see fuel economy ratings rolled back.

Wall Street seemed much more interested in the financial news, however, giving the company’s stock a much-needed lift. In the Glass House, Jim Hackett must be smiling. (Read More…)

By on November 21, 2018

Prosecutors may be looking into a vehicle recall affecting certain Hyundai and Kia vehicles equipped with the company’s turbocharged 2.0-liter and naturally-aspirated 2.4 liter engines. It’s not an investigation to determine if a recall is needed; rather, it’s a look-see to find out if existing recalls were conducted correctly.

It remains to be seen in these early stages if any charges will be filed. If action is taken, however, the fines levied would likely cut deeply into the company’s balance sheet.

(Read More…)

By on October 27, 2018

Given that Tesla CEO Elon Musk’s Twitter account now has third-party oversight, it’s unlikely we’ll see angry missives about the Fun-Busting Interrogators this weekend. However, that won’t stop the FBI from probing Musk’s past production promises for the Model 3 sedan.

As part of an ongoing Department of Justice investigation that kicked off after Musk’s fateful August 7th “funding secured” tweet, the FBI wants to know if the automaker misled investors via production promises that didn’t pan out. (Read More…)

By on September 18, 2018

Elon Musk

What a week it’s shaping up to be for Tesla CEO Elon Musk. Interestingly, if this latest report proves true, we can pin the blame for all of Musk’s misfortune over the past 24 hours on the presence of social media, and his tendency to overuse it.

According to Bloomberg, the U.S. Justice Department has opened a fraud investigation into Musk’s infamous “funding secured” tweet — the online message that kicked off a strange journey that ultimately went nowhere. (Read More…)

By on April 11, 2018

2015 Ram 1500 EcoDiesel HFE, Image: FCA

When Fiat Chrysler Automobiles regails the class with a “how I spend my summer” story this fall, expect some mention of handing over large sums of money to state and federal governments.

The U.S. Department of Justice and California Air Resources Board want the automaker to make things right after accusing it of polluting the nation’s air via its 3.0-liter EcoDiesel V6 engines. Some 104,000 Jeep and Ram vehicles from the 2014 to 2016 model years contained emissions control devices not revealed to the Environmental Protection Agency, which came down hard on the automaker after their discovery. According to FCA’s lawyer, the settlement could come this summer.

What does the DOJ want? According to an earlier settlement offer sent to the automaker, the levelling of “very substantial civil penalties” is the only way to ensure FCA learns its lesson. (Read More…)

By on February 5, 2018

2016 Ram 1500 Laramie Crew Cab 4x4 EcoDiesel

Fiat Chrysler Automobiles might need the 2019 Ram 1500’s newly increased payload capability when it comes time to visit the bank.

As we’ve told you since the scandal broke a year ago, FCA could find itself on the hook for hefty penalties after the Environmental Protection Agency slammed it for failing to declare a bevy of auxiliary emission control devices on its 3.0-liter diesel V6 engine. With the 2017 and 2018 Ram and Jeep EcoDiesel models now in compliance, the question becomes: what does FCA pay to settle the fallout?

According to documents obtained by Bloomberg, it seems the monetary fine sought by the U.S. Justice Department might not fit in the pickup bed. (Read More…)

By on June 15, 2017

2016 Ram 1500 EcoDiesel HFE, Image: FCA

Ram and Jeep fans looking to get into a new 1500 or Grand Cherokee with the highest possible fuel economy picked the wrong year to embark on their search. While owners of 2014-2016 Ram and Grand Cherokee EcoDiesel models wonder whether their vehicles are polluting as the EPA claims, Fiat Chrysler Automobiles’ 2017 EcoDiesels languish in legal limbo.

At first, the Environmental Protection Agency held up the certification of 2017 models as it slogged through a backlog of extra-stringent testing prompted by Volkswagen’s diesel emissions scandal. Then, in January, FCA’s hopes of getting 2017 EcoDiesels to dealers hit a brick wall. The automaker was accused of violating environmental regulations after the EPA discovered unannounced emissions control devices on the models — raising concerns of a possible VW-type defeat device scheme.

Then came a lawsuit filed by the U.S. Department of Justice. So, when can diesel fans get their hands on a light-duty FCA oil burner? It could be a while. (Read More…)

By on May 23, 2017

2015 Ram 1500 EcoDiesel HFE, Image: FCA

The U.S. Department of Justice has filed a civil lawsuit against Fiat Chrysler Automobiles, alleging the automaker violated the Clean Air Act.

At the root of the lawsuit is roughly 104,000 Ram 1500 and Jeep Grand Cherokee vehicles equipped with the 3.0-liter diesel V6, sold between 2014 and 2016. Earlier this year, the Environmental Protection Agency accused FCA of failing to disclose eight auxiliary emissions control devices during the certification process. The vehicle’s software allows for higher-than-permitted emissions at certain times.

Despite FCA’s protests — as well as attempts to head off a potential multi-billion-dollar fine — the parallels between this case and Volkswagen’s emissions saga are growing by the day. (Read More…)

By on January 28, 2017

2015-chevrolet-suburban-ltz-photo-576439-s-1280x782

An unnamed State Department employee and the manager of a northern Virginia repair shop appropriated and sold government vehicles for profit, the U.S. Department of Justice revealed Thursday.

The kickback scheme, detailed in a release from the U.S. Attorney’s Office, saw over a dozen State Department motor pool SUVs and a truckload of tires and wheels sold through a collision repair shop in Springfield, Virginia. The shop, Car Collision Center, is the go-to repair facility for various government departments.

It also has a license to sell vehicles. (Read More…)

By on January 11, 2017

Volkswagen TDI

The United States has now laid charges against six former or current Volkswagen officials for their role in the diesel emissions scandal.

A federal grand jury in the Eastern District of Michigan returned an indictment today, fingering the execs for playing key roles in a decade-long conspiracy to deceive the U.S. government and public. While five of the men live in Germany, one man — Oliver Schmidt, former head of VW’s regulatory compliance department — was nabbed by the FBI in a Miami airport on Saturday while attempting to return to Germany.

As the charges were handed down, the embattled automaker pleaded guilty to three criminal federal counts and agreed to pay $4.3 billion in criminal and civil penalties. (Read More…)

By on March 13, 2016

Data, Image: rh2ox/Flickr

A former employee, who was fired after news of Volkswagen’s diesel emissions scandal broke, is claiming in a lawsuit that he was let go from the automaker after noticing data related to the scandal was being deleted, several German language outlets are reporting (via Automotive News).

The lawsuit, filed by a former employee of Volkswagen Group of America, is the first possible evidence made public so far of a good, old fashioned cover up on this side of the Atlantic.

(Read More…)

By on January 27, 2016

 

That happy couple at the car dealership, back by popular demand...

That happy couple at the car dealership, back by popular demand.

Since we last reported on the Consumer Financial Protection Bureau (CFPB) and its controversial crusade to uncover racial discrimination by car dealers on interest rate markup on automobile loans, the agency has ordered over $100 million in fines and settlements against banks that some have deemed extortion. This has infuriated lenders and car dealers, and has frustrated lawmakers on both sides of the aisle.

The tale continued last week as the House Committee on Financial Services revealed that their work on this case now includes trying to get the CFPB and Department of Justice to agree on that age-old problem on how to get white car buyers to admit that they are actually white.

Let us review this investigation, which recently prompted the House committee to publish a report about the CFPB probe, titled “Unsafe at Any Bureaucracy: CFPB Junk Science and Indirect Auto Lending.

(Read More…)

By on January 30, 2012

It was the early 2010, the Toyota witch hunt was in full swing. While Toyota executives were burnt at the stake grilled on the Hill, Denso’s U.S. offices were raided by the FBI. Denso is a major automotive parts supplier, and a member of the Toyota family. The raid was part of an on-going investigation into alleged anti-trust violations. Or so they said.

After the NHTSA, NASA and the National Academy of Sciences could not find a ghost in the machine, the Department of Justice also cleared out its case file. For a fee. (Read More…)

By on March 29, 2010

Last week, we shared with you an ingenious method of the U.S. Department of Justice to contribute to the deficit-afflicted holdings of the U.S. Treasury. The method involves shaking down foreign companies who grease the wheels to get deals in even more foreign lands. Or who even think about greasing the wheels. Caught between European laws and U.S. laws, these companies pay and promise to sin no more. (Read More…)

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