After this morning’s announcement that Fiat Chrysler Automobiles would be subject to one of the largest civil penalties for an automaker, reports that the automaker could be on the hook for $2.5 billion in cars aren’t true, the automaker said today.
“While such amounts may exceed the $20 million, contrary to certain reports, FCA US does not expect that the net cost of providing these additional alternatives will be material to its financial position, liquidity or results of operations,” the automaker said in a statement.
In other words, expect to find some screaming deals on Ram trucks in the next few months.
In an order detailing the largest civil penalty for an automaker so far, the National Highway Traffic Safety Administration said Monday that Fiat Chrysler Automobiles could have to buy back 500,000 defective trucks and accept trade-in above market value for 1 million defective Jeeps .
The automaker’s record $105 million fine includes a $70 million penalty, $20 million set aside for meeting safety standards dictated by the federal bureau and an additional $15 million in penalties if an independent monitor discovers further safety violations.
Fiat Chrysler Automobiles announced that it would voluntary recall 1.4 million vehicles to patch a security exploit that could allow hackers to infiltrate a car’s vital systems.
The recall would apply to cars fitted with the Uconnect 8.4-inch touchscreen. A story released by Wired magazine this week detailed two hackers’ system that could take over a Jeep Cherokee and control the car’s systems, including throttle, braking and steering.
Jeep released the update last week, saying the patch was for “nothing in particular” and that they “continuously test vehicles systems to identify vulnerabilities and develop solutions.”
The release required owners to download the update onto a USB drive and install it themselves, or go to a dealership. FCA will mail affected owners a USB drive with the update now.
According to FCA, the company is unaware of any injuries related to the hack.
General Motors disclosed in its quarterly Securities and Exchange Commission filing Thursday that the Federal Trade Commission is investigating the automaker for selling used cars under recall, the Detroit News is reporting.
According to the automaker, the FTC notified GM that it was investigating “certified pre-owned vehicle advertising where dealers had certified vehicles allegedly needing recall repairs.”
The filing acknowledges the investigation is connected with the 2014 recall of 2.59 million cars with faulty ignition switches that could turn the car off while driving, disabling its airbags. So far, 124 deaths have been linked to the defect.
Left: Updated Tacoma Resistor, Right: Colorado Resistor
The fire-risk blower motor resistor harness has been recalled in the Hummer H3 and owners will start receiving repairs once parts become available. Owners of the Pontiac Solstice and Saturn Sky should be able to use the updated parts as well but will have to pay out of pocket as General Motors has not recalled them at this time. The Chevrolet Colorado and GMC Canyon also use a similar design and pose a similar fire risk but are slightly different than the recalled part due to having one less blower speed.
Hummer owners will most likely wait a few months minimum for the updated parts to get to their dealers to perform their free recall repairs. Colorado and Canyon owners may be waiting much longer — if they are recalled at all. The only silver lining for the Colorado and Canyon is that they use a similar resistor to the Toyota Tacoma and share a connector. The Tacoma also suffered from blower motor resistor issues and received updated parts along with a Technical Service Bulletin in 2011.
Last week, we learned General Motors was recalling the majority of their Hummer H3 and H3T models due to a fire risk from a melting blower motor resistor and harness. We also learned GM didn’t issue the recall until they were threatened by the National Highway Traffic Safety Administration.
A few days ago, Jalopnik’s Michael Ballaban pointed out the Chevrolet Colorado and GMC Canyon were also at risk due to similar components. These trucks may not be the last of the affected models as the Pontiac Solstice and Saturn Sky also shared many HVAC components with the Hummer H3.
Searching through the NHTSA complaints database and user forums yielded many examples of melted and burnt blower motor resistors and harnesses for the GM roadster twins.
Jalopnik has an interesting story today about how General Motors negotiated its way into recalling 200,000 Hummers only after the National Highway Traffic Safety Administration threatened to launch a formal investigation.
Last week, Hummer recalled nearly 200,000 SUVs due to an increased fire risk because of a faulty HVAC harness that could melt and catch fire.
GM knew about the problem in 2008, Jalopnik writes, and did nothing until issuing a recall this July.
Two proposals for reforms to how the U.S. handles safety recalls and penalizes automakers are winding through a Senate committee.
A proposal backed by three Senate Democrats would make automakers include a recall warning light in the dashboard of new cars to notify owners of a safety recall and lift the cap on delayed recall fines and more. A less-aggressive proposal put forward by Republicans would require dealers to notify owners if their cars have been recalled, something most automakers already do but aren’t required by law.
The National Highway Traffic Safety Administration estimates that 25 percent of recalls are never completed.
General Motors is recalling nearly 200,000 Hummer H3 and H3T models due to an increased fire risk, Autoblog is reporting.
According to the automaker, the car’s HVAC system can overheat and melt surrounding plastic, which could increase the chance for a fire in the car. GM says the fire has burned 42 cars and injured three people so far, but no crashes or fatalities have been reported. The recall effects 2006-2010 H3 models and 2009-2010 H3T cars.
Yesterday, the National Highway Traffic Safety Administration took the unusual step of hauling a single automaker to the Capitol to scold Fiat Chrysler for delays in recalls and repairs. The hearing is ahead of anticipated fines NHTSA may deal later this month, possibly as high as $700 million.
Attention was focused on Jeep Liberties and Grand Cherokees with rear-mounted gas tanks that could leak fuel if struck in a high-speed rear collision and potentially catch fire. Also of importance is the rate at which Jeep notified its owners of the recall.
FCA’s Senior Vice President for Vehicle Safety and Regulatory Compliance Scott Kunselman said at the hearing that FCA “could have done better in carrying out the campaigns.”