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Harsh words from senators over Chrysler's delay in reporting hack

The federal agency charged with protecting American motorists wants to know more about how hackers remotely commandeered and controlled a Jeep Cherokee. Hours after Fiat Chrysler Automobiles recalled 1.4 million cars affected by a flaw in their cellular connections, officials with the National Highway Traffic Safety Administration said Friday they'll further probe the defect by conducting a formal recall query investigation. "Opening this investigation will allow NHTSA to better assess the effectiveness of the remedy proposed," the agency said in a written statement. The remedy works, said Chris Valasek, one of the researchers who first discovered the security flaw. After testing for the vulnerability again Friday, he wrote on Twitter: "Looks like I can't get to @0xcharlie's Jeep from my house via my phone. Good job FCA/Sprint!" From his Pittsburgh home, Valasek had previously accessed and controlled co-worker Charlie Miller's Jeep along a St. Louis highway. Researchers have demonstrated remote hacks before, but the scope and severity of the Jeep vulnerability was unprecedented. The recall for a cyber threat was the first of its kind. Although a software patch and changes made by cellular provider Sprint appeared to fix the problem, news of the exploit and Chrysler's response brought a fresh round of consternation on Capitol Hill, where federal lawmakers had already expressed concerns about automotive cyber security. The Jeep hack elevated their concerns to a new level. "Cyber threats in cars are real and urgent, no figment of the imagination, as this huge recall demonstrates," said Sen. Richard Blumenthal (D-CT). "Incredibly, Chrysler delayed disclosing this chilling cyber-security danger egregiously and inexcusably, and strong sanctions are appropriate to send a message that other auto manufacturers will heed." Chrysler had known about the security gap since October, and Sen. Ed Markey (D-MA) wondered why it took the company so long to let customers know they were at risk. "Despite knowing about this security gap for nearly nine months, Chrysler is only now recalling 1.4 million vehicles to fix this vulnerability," he said. That's a potential pitfall for Chrysler, and something NHTSA will likely address in its investigation. Automakers are supposed to report safety-related defects to the agency within five days of discovery. But according to a chronology of events Chrysler submitted in its recall paperwork, it didn't inform NHTSA until July 15.

Chrysler IPO to be filed as early as this week

An initial public offering for the Chrysler Group could happen this week, following Sergio Marchionne's comments to Financial Times in London, according to a report from The Detroit News. Fiat, which owns 58.5 percent of Chrysler, has been in a battle with the UAW retiree healthcare trust over its minority stake in the company. While the automotive union recognizes its role as a temporary shareholder, the two couldn't come to an agreement on how the shares should be priced.
As Marchionne explained to FT, a Chrysler IPO allows the market, rather than the two competing sides, to determine the value of the shares. The public offering is a risky move, which could potentially hang one side out to dry - if the shares go high, it's bad news for Fiat, but if they go low, the UAW stands to lose. Regardless of where the stock prices go in an IPO, though, it's a move that's being supported by analysts, who are quick to cite Chrysler's near-constant growth and a product lineup that is getting healthier with each new introduction.

FCA issuing software update for 1.4M vehicles to prevent hacking

In the wake of a Jeep Cherokee being hacked remotely while on the road through its Uconnect infotainment system, FCA US is now issuing a software update for 1.4 million vehicles in the United States. Affected customers will receive a USB stick in the mail with the improved version; owners can check this website to see if their cars are affected. A large variety of models with FCA's 8.4-inch touchscreen infotainment system are affected. They include the 2015 Chrysler 200, 2015 Chrysler 300, 2015 Dodge Charger, and 2015 Dodge Challenger; 2013-2015 Dodge Viper; 2013-2015 Ram 1500, 2500, and 3500; 2013-2015 Ram 3500, 4500, and 5500 chassis cab; 2014-2015 Jeep Grand Cherokee and Cherokee; and 2014-2015 Dodge Durango. According to FCA in its announcement, the new software "insulates connected vehicles from remote manipulation." As of July 23, the company also "fully tested and implemented within the cellular network" additional security to prevent access to many of a vehicle's systems. FCA US says that it's conducting this campaign out of an abundance of caution and disputes the notion that there's a defect with these vehicles. Beyond the demonstration of the hack in the Cherokee, the automaker says that it's unaware of any other reports of these attacks actually happening. Related Video: Statement: Software Update July 24, 2015 , Auburn Hills, Mich. - FCA US LLC is conducting a voluntary safety recall to update software in approximately 1,400,000 U.S. vehicles equipped with certain radios. The recall aligns with an ongoing software distribution that insulates connected vehicles from remote manipulation, which, if unauthorized, constitutes criminal action. Further, FCA US has applied network-level security measures to prevent the type of remote manipulation demonstrated in a recent media report. These measures – which required no customer or dealer actions – block remote access to certain vehicle systems and were fully tested and implemented within the cellular network on July 23, 2015. The Company is unaware of any injuries related to software exploitation, nor is it aware of any related complaints, warranty claims or accidents – independent of the media demonstration.