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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.

Autoblog Minute: New car customer satisfaction down according to latest ACSI report

Customers have spoken and automobile satisfaction is down in 2015. Autoblog's Chris McGraw reports on this edition of Autoblog Minute. Show full video transcript text [00:00:00] Customers have spoken and automobile satisfaction is down in 2015. I'm Chris McGraw and this is your Autoblog Minute. The American Customer Satisfaction Index or ACSI released its updated numbers and according to the survey, new car buyer satisfaction is down for the third straight year. According to an ACSI press release, customer satisfaction with new automobiles has fallen 3.7 percent, to 79 on its 100-point scale. The ACSI report is based on over 4,100 customer surveys collected in the second quarter of 2015 Sitting at the top of the industry in customer satisfaction is Toyota's Lexus brand with a score of 84. Which was good enough to dethrone Mercedes-Benz, which fell 3% to a score of 83. Of the Big Three, Ford was the only domestic automaker to maintain overall customer satisfaction with its score of 81. General Motors slipped 3% to 79 and Fiat Chrysler had a 5% drop, registering a score of 75 out the possible 100. What's driving this trend of customer dissatisfaction? ASCI points to the rise in recalls and car prices. Where do you land on customer satisfaction spectrum? Sound off in the comments with your thoughts on the current state of car ownership and brand quality. For Autoblog, I'm Chris McGraw. Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals. Chrysler Fiat Ford GM Lexus Mercedes-Benz Car Buying Ownership Autoblog Minute Videos Original Video

Pete Grady retiring from Chrysler, Maserati

Fiat Chrysler Automobiles is about to lose one of its top executives as the president of Maserati North America, Pete Grady, has announced his retirement. A lifelong automotive industry exec, Grady joined the American Motors Corporation back in 1984 after graduating from John Carroll University in his native Ohio. After AMC was bought out by Chrysler, Grady started rising through the ranks under the Pentastar as a sales manager. He was named vice president of network development and fleet operations in 2009 and was shortly thereafter put in charge of the Chrysler Group's dealer network. He continued to hold that position when he was named last year as the top man at Maserati North America. Grady will continue to hold responsibility for Chrysler's dealer network until his retirement takes effect on March 31, 2015. His position as head of Maserati's American office, however, will pass to the Trident marque's global sales chief Christian Gobber, who will hand off responsibility for the Chinese region to Mirko Bordiga but maintain his global portfolio. CHANGES AT THE TOP IN MASERATI NORTH AMERICA AND MASERATI CHINA Monday, 8 December 2014 – Effective January 1st, 2015, Christian Gobber will be assigned responsibility for Maserati North America, replacing Pete Grady, who has announced his intent to retire effective March 31st, 2015. Christian Gobber will maintain his responsibility for Maserati Global Sales. Effective January 1st, 2015, Mirko Bordiga will join Maserati and will be assigned responsibility for Maserati China, replacing Christian Gobber. Maserati further strengthens its sales and commercial structure in the two main markets for the Trident brand. Maserati CEO Harald Wester thanks Pete Grady for his dedication and achievements at the helm of Maserati in North America, and wishes all the best to Christian Gobber and Mirko Bordiga in their new positions. ### Chrysler Group's Grady to Retire December 5, 2014 , Auburn Hills, Mich. - Chrysler Group today announced that Peter Grady has stated his intention to retire, effective March 31, 2015. In the interim, Grady will retain his current responsibilities as Vice President Dealer Network Development and continue as a member of the Company's NAFTA Leadership Team. In a move announced earlier, Christian Gobber will assume responsibility for leading Maserati North America, effective January 1, 2015.