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Dealer chain accuses FCA of paying dealers to pad sales [UPDATE]

UPDATE: The story has been updated to include a full press release from Fiat Chrysler Automobiles on the Napleton Automotive Group's allegations. A Chicago-based dealership group has filed an explosive lawsuit against Fiat Chrysler Automobiles accusing the company of paying dealers to fake new-vehicle sales, Automotive News reports. Edward Napleton, president of the Napleton Automotive Group, filed the suit on Tuesday. It claims that FCA offered Napleton money to fudge end-of-month sales figures. According to the filing, dealers would report false transactions, only to "back out" at the start of a new month "before the factory warranty on the vehicles could be processed and start to run." According to Automotive News, FCA was aware of the false reports and rewarded dealership managers for hitting sales targets. The lawsuit cites one example at Napleton Arlington Heights Chrysler Jeep Dodge Ram where an FCA business center manager offered Napleton $20,000 "to falsely report the sales of 40 new vehicles." The payment would be disguised "as a co-op advertising credit to the dealer's account." Such a move would prevent a sales audit, AN reports. Napleton rejected the deal, telling FCA it was illegal. He later learned a similar arrangement was made with a competing dealer to falsify the sale of 85 vehicles. They were given "tens of thousands of dollars as an illicit reward for their complicity in the scheme." FCA has vehemently denied the accusation in a statement obtained by Automotive News. "While the lawsuit has not yet been served on FCA US, the company believes that the claim is without merit and was filed by internal counsel to the dealer group as FCA US has concurrently been discussing with the dealer group the need to meet its obligations under some of its dealer agreements," the statement said. "The company is confident in the integrity of its business processes and dealer arrangements and intends to defend this action vigorously." There are additional allegations, as well, claiming FCA "strong-armed its dealers to achieve sales numbers" and accusing the company of maintaining a "pattern of conduct towards its dealers [that] has been one of coercion and threats of termination having nothing to do with the actual performance of its dealers." FCA is riding a wave of 69 consecutive months of year-over-year sales gains. More on this one as it becomes available. FCA Strongly Rejects Allegations by Two U.S.

PSA unions vote in favor of merger with Fiat Chrysler

PARIS — The majority of unions representing workers at Peugeot maker PSA are in favor of a planned $50 billion merger with Fiat Chrysler, PSA executives and union representatives said. However, the unions said that once the merger deal was signed, they would be seeking detailed information about the plans for the combined company. At a PSA works council meeting, all trade union representatives on the council voted to give a favorable opinion on the merger. "We will remain vigilant about the social impact and await a clearer and more detailed picture of the plan's implications for plants, volume, and how much work will be given to the foundries," said Franck Don, representative of the CFTC union. "But the project in the form it's been presented makes sense because the two groups complement each other, are in good financial health, and thanks to the new format will attain a critical size which is vital in the auto business today." The merger would help the firms pool resources to meet tough new emissions rules and investments in electric and self-driving vehicles, as well as counter a broader downturn in car markets. Securing support from Europe's powerful trade unions will be critical for the merged company, which will employ more than 400,000 staff and operate hundreds of factories worldwide. The deal has stirred concerns in Germany and Britain where plants making Opel and Vauxhall cars have seen jobs cut in recent year as part of a cost-cutting drive. UAW/Unions Chrysler Fiat Citroen Peugeot PSA

Chrysler recalling nearly half a million Durangos and Grand Cherokees

Rule number one of public relations – save the bad news for Friday. Fiat Chrysler has adhered to that, announcing today that it'd be voluntarily recalling 467,480 SUVs. This latest recall could actually be thought of as a continuation of a September 2014 recall, relating to the fuel-cell relay. In that case, some 188,723 Dodge Durango and Jeep Grand Cherokee CUVs from model year 2011 were recalled. And this time, it's the Durango and GC in trouble again. FCA is adding crossovers from model years 2012 and 2013 to the fuel-pump recall, although only diesel-powered Jeeps with the 3.0-liter V6 that were sold outside of North America are affected this time around. As with the previous recall, deformities in the fuel-pump relay, which could affect its functioning. In most cases, FCA reports that the affected vehicles simply won't start, although they also could be prone to stalling. A new relay circuit will be installed that promises increase durability. Of the 467,480 vehicles being recalled, 338,216 were sold in the US market, 18,991 went to Canada and 10,829 were shipped south of the border, to Mexico. Outside of the NAFTA region, FCA is recalling 99,444 vehicles. No injuries or accidents have been associated with this recall. Statement: Fuel-Pump Relay February 27, 2015 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 467,480 SUVs worldwide to install new a relay circuit that improves fuel-pump relay durability. FCA US engineers have determined a condition identified in a previous investigation may extend to additional vehicles. The previous investigation, which led to a recall, traced a pattern of repairs to fuel-pump relays that are susceptible to deformation. This may affect fuel-pump function, preventing a vehicle from starting, or leading to engine stall. Of the two scenarios, the no-start condition is the more common. FCA US is unaware of any related injuries or accidents. The fuel-pump relay is located inside the Totally Integrated Power Module (TIPM), which also helps manage other vehicle functions. None of these other functions, including air-bag deployment, is affected by the fuel-pump relay. The new campaign affects an estimated 338,216 vehicles in the U.S.; 18,991 in Canada; 10,829 in Mexico and 99,444 outside the NAFTA region. Covered are model-year 2012 and 2013 Dodge Durango full-size SUVs and non-NAFTA 2011 Jeep Grand Cherokee mid-size SUVs equipped with 3.0-liter diesel engines.