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Government Ending Jeep Investigation

The government is closing its investigation into older-model Jeeps with fuel tanks that could rupture and cause fires. The National Highway Traffic Safety Administration said Friday it has "no reservations" with Chrysler Group's plans to recall the vehicles. The agency is expected to release a report on its investigation in a few weeks. The decision ends an unusually public struggle between Chrysler and NHTSA. The agency asked Chrysler to recall 2.7 million Jeeps last June, contending that their gas tanks - which are positioned behind the rear axle - were at risk of rupturing and catching fire in rear-end crashes. Involved were Grand Cherokee SUVs from the 1993 to 2004 model years and Liberty SUVs from 2002 to 2007. Chrysler initially refused to recall the vehicles. The company said the rate of fuel leaks and fires after crashes was similar to comparable vehicles that were sold during the time in question. It was the first time in two years that an automaker had refused NHTSA's request for a recall. Chrysler later agreed to recall 1.56 million of the Jeeps and install trailer hitches on them to help protect the gas tanks. The company sent notices to the remaining customers saying their vehicles were fine if they have factory-installed or Chrysler-made trailer hitches. NHTSA said late Friday that it has been in close contact with Chrysler and will monitor the recall as it continues. Chrysler has told customers that it will start installing the hitches soon. "Consumers should have their vehicles serviced promptly once they receive final notification from Chrysler,"NHTSA said in a statement. In its own statement Friday, Chrysler said, "We share NHTSA's commitment to safety." NHTSA's outgoing chief, David Strickland, told The Associated Press in an interview last month that Chrysler had convinced NHTSA that the Jeeps were no more dangerous than similar vehicles sold at that time. "Those vehicles performed at a rate similar to their peers. That is the keystone analysis as to whether something poses an unreasonable risk to safety," Strickland said. Friday was Strickland's last day at NHTSA. He is joining Venable, a law firm. NHTSA began investigating the Jeeps at the request of the Center for Auto Safety, a Washington-based advocacy group. "It is tragic that NHTSA approved Chrysler's sham trailer hitch recall for Jeeps that explode in rear impacts," the Center for Auto Safety's director, Clarence Ditlow, said Friday.

FCA-Renault revival may hinge on willingness to cut Nissan stake

Fiat Chrysler Automobiles and Renault are looking for ways to resuscitate their collapsed merger plan and secure the approval of the French carmaker's alliance partner Nissan, according to several sources close to the companies. Nissan is poised to urge Renault to significantly reduce its 43.4% stake in the Japanese company in return for supporting a FCA-Renault tie-up, two people with knowledge of its thinking also told Reuters. It is still far from clear whether any concerted effort to revive the complex and politically fraught deal can succeed. FCA Chairman John Elkann abruptly withdrew his $35 billion merger offer in the early hours of June 6 after the French government, Renault's biggest shareholder, blocked a vote by its board and demanded more time to win Nissan's backing. Nissan representatives had said they would abstain. The failure, which FCA and Renault blamed squarely on the French government, deprived both companies of an opportunity to create the world's third-biggest carmaker with 5 billion euros ($5.6 billion) in promised annual synergies. It also shone a harsh light on Renault's relations with Nissan, which have gone from frayed to fried since the November arrest of former alliance Chairman Carlos Ghosn, now awaiting trial in Japan on financial misconduct charges he denies. REVIVAL TALKS Italian-American FCA — whose brand stable encompasses Fiat runabouts, Jeep SUVs, RAM pickups, Alfa Romeo luxury cars and Maserati sports cars — has so far turned a deaf ear to suggestions by French officials that its merger proposal could be revisited. But since the breakdown, Elkann and his French counterpart Jean-Dominique Senard have had talks about reviving the plan that left the Renault chairman and his Chief Executive Thierry Bollore upbeat about that prospect, three alliance sources said. Renault and a spokesman for FCA declined to comment. One of Elkann's senior advisors on the Renault merger bid, Toby Myerson, was expected at Nissan headquarters in Yokohama on Monday for exploratory discussions with top management, two people with knowledge of the matter said. Nissan CEO Hiroto Saikawa is likely to attend. Myerson did not respond to a message from Reuters seeking comment. The meeting comes amid mounting strains that may preclude compromise, after Senard warned Saikawa that Renault was prepared to block key Nissan governance reforms in a dispute over board committees.

Chevy Bolt wins 2017 Green Car of the Year

We knew that a plug-in vehicle was going to win the 2017 Green Car of the Year award this year, given that all five finalists have a way to charge up. And when Ron Cogan, the editor and publisher of Green Car Journal, announced the winner – the 2017 Chevy Bolt EV – he said that the car itself represents one of those times in the auto industry when everything is about to change. Similar to the invention of the starter motor, things are about to get different. For now, though, the fact that the Bolt EV won an award sounds like the same old thing all over again. Just this week, it was named Motor Trends Car of the Year and to the Car And Driver Top 10 list. The other four finalists for Green Car of the Year included the Toyota Prius Prime, the Chrysler Pacifica, the Kia Optima (including hybrid and plug-in hybrid models) and the BMW 330e iPerformance. Last year, the winner was the 2016 Chevy Volt. Did Green Car Journal make the right selection this year? See the award ceremony below.