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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.

2015 Fiat 500C Abarth Automatic

"I would not, could not in a tree. Not in a car, you let me be. I do not like them in a box. I do not like them with a fox. I do not like them in a house. I do not like them with a mouse. I do not like them here or there. I do not like them anywhere. I do not like green eggs and ham. I do not like them Sam-I-Am." Why am I quoting Dr. Seuss' classic children's tale in the review of a small Fiat? Well, much like oddly colored eggs and ham, for the 500C Abarth, Fiat has taken something formerly palatable and added a rather bizarre quality – a six-speed automatic transmission. "I do not like an auto trans," I said. "I'd only drive it in a van." What would happen to the 500 Abarth's hilariously charming and flawed character? Isn't an automatic gearbox diametrically opposed to the cheap and cheerful driving pleasure inherent in the scorpion-badged Cinquecento? After a week behind the wheel, I was shocked to find that the auto Abarth is nearly as entertaining as its clutch-equipped counterpart. Driving Notes The Aisin six-speed automatic is beefed up for the higher torque of the hot 500 Abarth, and the final drive ratio is shorter. Despite the Abarth's spicier character, the shifter retains the same PRNDL pattern and piano-black surround as the standard 500. While I laud Fiat for offering a correct shifter layout to the manual-shifting scheme – pull to upshift and push to downshift – that smart move is overshadowed by the lack of wheel-mounted paddle shifters. There's not much else to complain about with the new automatic, because on the road it delivers similar performance to the five-speed manual. Upshifts are smooth and quick in the standard setting, and only get sharper if you push the Sport button on the dash. On top of that, wide-open-throttle upshifts show off the sonorous voice of the Abarth-tuned exhaust. It pops and cracks and belches in a horribly, hilariously anti-social way. I love it. The twin pipes are just as vocal on the rev-matched downshifts. The gearbox isn't as quick to drop ratios as some of its two-pedal competitors, like the dual-clutch-equipped Volkswagen GTI or even the traditional automatic offered in the Mini Cooper S (coincidentally also an Aisin unit). That said, the difference isn't significant enough to count as a major demerit. One minor change with the transmission is the power output. While the manual model has 160 horsepower, the auto drops to 157. Torque, though, is up from 170 pound-feet to 183 lb-ft.

Fiat loses $14k on every 500e it builds, Marchionne doesn't want you to buy one

Fiat Chrysler Automobiles CEO Sergio Marchionne made some interesting comments during a frank and entertaining talk at the Brookings Institution earlier today, saying he hoped that no one bought the Fiat 500e, the well-received EV based on the adorable Italian car.
"I hope you don't buy it," said Marchionne, during a talk and question-and-answer session that focused on the aftermath of the automotive bailouts, "because every time I sell one, it costs me $14,000."
"I'm honest enough to tell you that I'll make the car, I'll make it available, which is my requirement. I'll sell the limit of what I'm required to sell and not one more," Marchionne said. "If we build just those vehicles, we'll be back in Steve [Rattner's] successor's office in Washington asking for a second bailout, because we'll be bankrupt by Christmas"