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NHTSA investigates a million-plus Jeep Cherokees for parking brake issue

The National Highway Transportation Safety Administration (NHTSA) is investigating a potential safety issue that could be present in more than 1 million Jeep Cherokees sold for the 2014-2020 model years. Per owner complaints, these cars may be equipped with an electronic parking brake control module that is susceptible to water intrusion. If the water causes a short, it can result in uncommanded activation of the parking brake while the vehicle is in motion, which can lead to a stall, NHTSA says.  If you follow Jeep Cherokee news closely (and who doesn't?), this issue may ring a bell. That's because Jeep was on the hook for recalling the Cherokee for water intrusion into the liftgate control module, which is fitted right next to the parking brake module. In that instance, short circuits had the potential to cause a fire, which has not so far been indicated as a potential side effect of the new parking brake issue, but any time electricity is involved, there's usually at least some risk for ignition.  The Cherokee is just one of four Stellantis models with a new open investigation, the Detroit Free Press reported Tuesday. NHTSA is also looking into reports of a transmission problem that could strand owners of 2019-2021 Chrysler Pacifica plug-in hybrid minivans and a crankshaft and/or camshaft position sensor problem that could cause a stall in the 2016 Dodge Journey and Jeep Compass. Between the two, these investigations cover an additional 300,000 vehicles.  None of these vehicles are being recalled at this point, however a NHTSA investigation is the first major step toward a recall being initiated. The regulator will work with Stellantis to determine whether a recall is necessary.  Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Government/Legal Chrysler Dodge Jeep Ownership Safety SUV

EV cost burden pushing automakers to their limits, says Stellantis' CEO Tavares

DETROIT — Stellantis CEO Carlos Tavares said external pressure on automakers to quickly shift to electric vehicles potentially threatens jobs and vehicle quality as producers struggle with EVs' higher costs. Governments and investors want car manufacturers to speed up the transition to electric vehicles, but the costs are "beyond the limits" of what the auto industry can sustain, Tavares said in an interview at the Reuters Next conference released Wednesday. "What has been decided is to impose on the automotive industry electrification that brings 50% additional costs against a conventional vehicle," he said. "There is no way we can transfer 50% of additional costs to the final consumer because most parts of the middle class will not be able to pay." Automakers could charge higher prices and sell fewer cars, or accept lower profit margins, Tavares said. Those paths both lead to cutbacks. Union leaders in Europe and North America have warned tens of thousands of jobs could be lost. Automakers need time for testing and ensuring that new technology will work, Tavares said. Pushing to speed that process up "is just going to be counter productive. It will lead to quality problems. It will lead to all sorts of problems," he said. Tavares said Stellantis is aiming to avoid cuts by boosting productivity at a pace far faster than industry norm. "Over the next five years we have to digest 10% productivity a year ... in an industry which is used to delivering 2 to 3% productivity" improvement, he said. "The future will tell us who is going to be able to digest this, and who will fail," Tavares said. "We are putting the industry on the limits." Electric vehicle costs are expected to fall, and analysts project that battery electric vehicles and combustion vehicles could reach cost parity during the second half of this decade. Like other automakers that earn profits from combustion vehicles, Stellantis is under pressure from both establishment automakers such as GM, Ford, VW and Hyundai, as well as start-ups such as Tesla and Rivian. The latter electric vehicle companies are far smaller in terms of vehicle sales and employment. But investors have given Tesla and Rivian higher market valuations than the owner of the highly profitable Jeep and Ram brands. That investor pressure is compounded by government policies aimed at cutting greenhouse gas emissions. The European Union, California and other jurisdictions have set goals to end sales of combustion vehicles by 2035.

FCA workers get raises, health care co-op in new UAW deal

The pending labor agreement between FCA US and the United Auto Workers is now in the hands of union members to confirm. It's expected to be accepted, but a final decision could take weeks, The Detroit News reports. Employees didn't get everything they were hoping for, and contrary to earlier reports, the two-tier wage system remains in place. However, there are attempts to lessen the difference between the levels in this four-year deal. Assuming FCA US workers agree to this offer, the starting pay for tier-two workers would go up around a dollar to $17 an hour. The other level would now begin at $25.35, about a $6 increase, and they would receive 3 percent raises in the first and third year of the deal. Both groups also get $800 in profit sharing for each percent the automaker's profit margin rises above two percent. Extra money kicks in for the second tier above eight percent. Union members get a $3,000 bonus for accepting this contract, as well. The other major change under the pending agreement is the previously rumored switch to a healthcare co-op. The goal is to collect members from the Big Three together to create a huge member base for leverage to negotiate better rates with insurance companies. The UAW is promising no increase in cost to workers, according to The Detroit News. The idea was inspired by the similar structure for the Voluntary Employee Beneficiary Association for union retirees. UAW boss Dennis Williams expects the agreement to be approved. "Once the membership looks at it, hears the explanation for it, I think they'll ratify it," he said, according to The Detroit News. The next step is to craft similar deals with General Motors and Ford. Related Video: