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Detroit's new emergency city manager worked on Chrysler bankruptcy [w/video]

Kevyn Orr, the new emergency city manager of Detroit, has a history with one of Michigan's most famous residents: Chrysler. Governor Rick Snyder (at right) appointed Orr to the position yesterday with the belief that Detroit needs outside assistance to right the city's mounting financial woes. Orr (at left), a partner with the Jones Day law firm, will begin work on March 25 and receive $275,000 a year for his work. While state officials believe the new city manager will be able to complete his duties in 18 months, the contract is technically open-ended.
The 54-year-old attorney helped steer Chrysler through its 2009 bankruptcy, earning $700 per hour for his efforts. He was also instrumental in convincing the courts to allow Chrysler to shutter 789 dealerships in a single month. Orr says he's aware that his efforts won't have made him any friends in Southern Michigan.

FCA chairman confirms Marchionne email to Barra

FCA CEO Sergio Marchionne is apparently backing up his talk about the need for consolidation in the auto industry with quite a bit of action. One recent report claimed that he even emailed General Motors CEO Mary Barra to make a deal. FCA chairman John Elkann has now confirmed that the correspondence actually happened, and that it wasn't a one-off occurrence. "It was not the only email, it was not the only conversation," Elkann (pictured above with Marchionne) said, according to Reuters. He is a member of the Agnelli family that has a controlling stake in FCA's stock and is supporting the idea of a merger. The automaker is willing to "act with determination if there are the prerequisites to do something that makes sense," Elkann said. Marchionne has been pushing for industry consolidation for months. While GM has been the main target of late, Ford was also rumored as a partner under consideration. In the past, there have also been reports of FCA negotiating with Volkswagen Group and PSA Peugeot Citroen for mergers, as well. According to Reuters, part of the reason for all of this effort might be as a way for Marchionne to ensure his legacy, though he's denied that. He's reportedly considering retiring after 2018. In his opinion, consolidation is needed because automakers are investing too much money to achieve the same goals. The situation would be better after mergers, and he predicts something to happen before 2018. Related Video: News Source: ReutersImage Credit: Massimo Pinca / AP Photo Earnings/Financials Chrysler Fiat Sergio Marchionne FCA merger John Elkann

NHTSA preparing to wallop FCA, automaker 'failed to do its job'

As embattled the National Highway Traffic Safety Administration may be, but that certainly doesn't mean it isn't willing or able to put the smack down on automakers that violate its recall procedures. Following a public hearing on Thursday, the government safety arm is preparing what will likely be some very serious punishments for Fiat Chrysler Automobiles. FCA stands accused of mishandling 23 individual recalls covering some 11 million vehicles since 2013, with NHTSA claiming the Italian-American automaker kept it "in the dark," failing to notify the government of safety defects. Uncle Sam also alleges that FCA failed to notify consumers of important safety notices and didn't provide a steady supply of replacement parts. For these charges, the automaker could be fined up to $35 million per recall, which could mean a maximum of $805 million in fines. FCA could also be forced to buy back the unrepaired vehicles. "We have serious concerns with Fiat Chrysler notifications to owners and to NHTSA about its recalls. In every one of the 23 recalls, we have identified ways in which Fiat Chrysler failed to do its job," Jennifer Timian, the head of the Office of Defects Investigation, said during the FCA hearing, The Detroit News reports. The company also "repeatedly failed to provide NHTSA with other critical information about its recalls, including changes to the vehicles impacted by the recalls and its plans for remedying those vehicles." Fiat Chrysler, for its part, didn't really fight back during its hearing, although Scott Kunselman (shown above during the hearing), the senior vice president of vehicle safety and regulatory affairs at FCA, did tell The News that, "We absolutely had no mis-intent." "The plan is to move forward," Kunselman said, adding that the company has "fallen short," and that "some of the things we've done were sloppy." NHTSA administrator Mark Rosekind told The News that the regulator would issue its sanctions by the end of July, adding that he saw no way that FCA could avoid punishment.