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Weekly Recap: FCA hit with record fine as NHTSA crackdown continues

The National Highway Traffic Safety Administration slapped Fiat Chrysler Automobiles with a record fine this week that could reach $105 million. The punishment comes after NHTSA found problems with the automaker's execution of 23 recalls that affect more than 11 million vehicles. The consent agreement, announced Sunday, calls for FCA to pay a $70-million cash fine and requires the company to spend at least $20 million over a three-year period on industry outreach programs and to beef up old recall campaigns. Failure to comply will result in another $15-million fine. FCA also agreed to federal oversight, which includes an independent monitor to oversee the company's recalls. The $70-million cash fine equals a penalty NHTSA levied on Honda in January. "Fiat Chrysler's pattern of poor performance put millions of its customers and the driving public at risk," NHTSA administrator Mark Rosekind said in a statement. "This action will provide relief to owners of defective vehicles, will help improve recall performance throughout the auto industry, and gives Fiat Chrysler the opportunity to embrace a proactive safety culture." FCA called the deal a "consensual resolution," but admitted that it "failed to timely provide an effective remedy" during certain recalls. "We are intent on rebuilding our relationship with NHTSA and we embrace the role of public safety advocate," the company said in a statement. The announcement kicked off a busy week for the automaker. NHTSA agreed FCA did not need to recall 4.7 million vehicles after an investigation failed to find defects with a power module used in some Jeep, Dodge, and Ram vehicles. A Georgia judge also reduced a civil verdict involving a death in a Jeep Grand Cherokee crash. Amid all of that, the company reported net profit of about 333 million euros, or $364 million in the second quarter on Thursday. OTHER NEWS & NOTES FCA ramps up Hellcat production Despite a decidedly legal and financial week for FCA, there was still time for the performance side of the business to briefly grab the spotlight. The automaker is more than doubling its production of the Dodge Challenger and Charger SRT Hellcats in response to strong demand. The order bank opens the second week of August and production begins in September. FCA will finish up its scheduled 2015 model-year Hellcat builds, and cancel any "unscheduled" versions, though customers will get discounted pricing for 2016.

10 cool cars from Peugeot's lineup we'd love to see in the U.S.

FCA and PSA are merging: The mega-alliance will not just bring a desperately needed technology boost to Fiat Chrysler, it will also open up potential U.S. sales venues to brands that have long been absent here. Citroen left in the 1970s, Peugeot deserted us 20 years later; Citroen's DS spinoff is a complete unknown in the States. Moreover, there's Opel, formerly a part of General Motors, with its UK-based Vauxhall attachment. As a brand, Opel was last seen here around 1970, its models sold through the Buick sales channel. Even though Opel is now part of the PSA empire, there is still significant overlap with Buick: The Buick Encore is an Opel Mokka, the Regal is an Insignia, and though this is its last model year in the States, the Cascada had been shared as well. But in Europe, the replacement of GM-shared platforms with PSA-Opel models is well under way, We have assembled 10 of the most interesting cars currently offered under the Citroen, DS, Peugeot and Opel/Vauxhall monikers. Should they be offered in the U.S.? We certainly think they deserve consideration. Citroen C4 Cactus Purist architecture in automotive form: The polarizing C4 Cactus is shaped by geometric lines, although it has recently been toned down and assumed a somewhat crossover-like stance that was absent before the facelift. Also lost is the funky full-width front bench that you could initially choose. Still, the C4 Cactus shuns conventional notions of aggressive and prestige-oriented design, opting for functionality and a product-design-like attitude. Sadly, it won't survive past its current generation. Citroen C5 Aircross Bigger and taller than the C4 Cactus, the C5 Aircross features even more of an SUV look, though it comes with front-wheel drive only. Controls and instruments have a reduced, product-design-like look, and the seat patterns offer a retrofuturistic interpretation of 1970s design. The "Advanced Comfort" chassis emphasizes ride quality, but the C5 Aircross is still surprisingly agile. No wonder, as Citroen has a proud rally heritage.  DS 3 Crossback This compact crossover oozes technology and luxury: Fitted with diesel or gasoline engines or with a fully electric powertrain, the DS 3 Crossback can be specified with a plethora of premium options. The cockpit plays with upscale patterns and materials; some dashboard versions are actually inspired by stucco veneziano. The diesel, our favorite engine option for this vehicle, is incredibly efficient and surprisingly torquey.

Proposed deal averts strike between FCA and UAW

With the deadline rapidly approaching for a strike, FCA US and the United Auto Workers were able to hammer out a potential agreement late last night to avoid picket lines, at least for now. While the UAW said in a statement that it "secured significant gains," the actual contents of the deal haven't been published yet. Before going public, the offer still needs the consent of the UAW National Chrysler Committee, and that body has a meeting on 11:00 AM Eastern on Friday, October 9, to make a decision. If the Chrysler committee signs off on the deal, it would then go to the union's 40,000 FCA US workers for a vote, according to The Detroit News. "We have made real gains and I look forward to a full discussion of the terms with our membership," President Dennis Williams said in the UAW's statement. FCA US isn't providing any answers about the proposed contract either. In a release about the negotiations, the automaker said: "FCA US confirms that it has reached a new tentative agreement with the UAW. Because the agreement is subject to UAW member ratification, the Company cannot discuss the specifics of the agreement pending a vote by UAW members." The original tentative contract with FCA US promised raises and the creation of a healthcare co-op. However, 65 percent of union members rejected the deal, The Detroit News reports. Workers didn't like that the offer kept a two-tier wage system between veterans and more recent employees. The details of the health plan also weren't explained well, and there wasn't much info on possible production changes. UAW-FCA NATIONAL BARGAINING COMMITTEE VOTES ON PROPOSED TENTATIVE AGREEMENT Featured / News / October 8, 2015 UAW National Chrysler Council Leaders to Convene for Vote on Friday, Oct. 9 — Terms to be announced following Friday vote Detroit, Mich. – After a lengthy bargaining process, the UAW FCA National Bargaining Committee has secured significant gains in a proposed Tentative Agreement with FCA US announced today. The bargaining committee unanimously voted to send the proposed Tentative Agreement to local union leaders who make up the union's UAW National Chrysler Council. The UAW Chrysler Council will meet in Detroit at 11 am on Friday to discuss and vote on the agreement. "We heard from our members, and went back to FCA to strengthen their contract," said UAW President Dennis Williams.