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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.

FCA CEO Mike Manley will take undefined new role after PSA merger

MILAN — Fiat Chrysler Chief Executive Mike Manley will remain with the new group set to result from a planned merger with French rival PSA-Peugeot, Chairman John Elkann said on Wednesday. In a letter to Fiat Chrysler (FCA) employees on the day the two companies announced a binding agreement for a $50 billion tie-up to create the world's fourth-largest carmaker, Elkann said he was "delighted" that the combined group would be led by current PSA CEO Carlos Tavares. "And Mike Manley, who has led FCA with huge energy, commitment and success over the past year, will be there alongside him," he said. He did not say what position Manley would hold. Elkann — who will chair the new group — said there was still much to be done to complete the merger. "Over the coming months we must work tirelessly and determinedly to fulfill all the approval requirements needed to finalize the commitment we have signed," he said. Related Video:     Hirings/Firings/Layoffs Chrysler Dodge Fiat Jeep RAM Citroen Peugeot FCA PSA merger Mike Manley carlos tavares

Dodge whips covers off 2013 Blacktop series

Dodge introduced us to its Blacktop model lineup a year ago with the 2012 Charger and followed up with more recently with the 2013 Challenger and 2013 Avenger. Now the automaker will be applying this ominous-looking treatment to the Durango, Grand Caravan and Journey models for 2013 as well. These models will be unveiled next week at the Detroit Auto Show, but Dodge has released most of the details for these new products including pricing and availability.
If the Grand Caravan R/T (aka, the Man Van) wasn't aggressive enough for you or its $30,000 starting price was a little too pricey, then the 2013 Grand Caravan Blacktop could be the ticket. Starting with the SXT trim level (which stickers at $19,995), the Blacktop package costs only $595, and adds unique features such as blacked-out headlights, grille and fog lights bezels and an all-black interior. The van rides on black-accented, 17-inch aluminum wheels. The Grand Caravan Blacktop is only available in monochromatic paint schemes limited to Billet Silver, Brilliant Black, Maximum Steel, Redline Red and Stone White
Likewise, the 2013 Journey Blacktop is offered only on the SXT model (starting at $18,995) with all of the crossover's normal options such as four- and six-cylinder engines, five- or seven-passenger seating and front- or all-wheel drive. The Blacktop package adds $995 to the Journey SXT's price and features many of the same black accents as the Grand Caravan like the headlights, grille, door mirrors and lower fascia. Exterior colors are limited to Bright Silver, Bright Red, Brilliant Black, Brilliant Red Tri-Coat, White, Pearl White Tri-Coat and Storm Grey, and the package's 19-inch wheels come in Gloss Black. Inside, the Journey Blacktop comes standard with black cloth seats and Chrysler's 8.4-inch Uconnect touch screen, but black leather is also available as an option.