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Fiat Chrysler Australia executive in trouble over misuse of company funds

While the merger to create FCA was coming together, its managing director for Australia, Clyde Campbell, was allegedly racking up 30 million Australian dollars ($23.1 million) in spending for himself, family, and friends. Now, the former boss is facing a court case from the automaker's legal team for the purported misappropriation. Among the more opulent expenses that Campbell allegedly put on Chrysler's tab included a 40-foot yacht worth the equivalent of $308,000 and lavish Christmas parties for workers, according to The Age. Despite being required to only travel in economy class and get permission for international travel, he also reportedly racked up the equivalent of over $413,000 travel expenses. "The more we dug, the more we found," said an unnamed source to The Age. Campbell came to power in Australia as a general manager for DaimlerChrysler, and became managing director in October 2010. He was reportedly a close friend with former Mercedes-Benz USA CEO Ernst Lieb. After Lieb lost his wrongful dismissal lawsuit, Campbell allegedly helped his friend's partnership in an Aussie auto dealer by using FCA funds for financial support totaling the equivalent of about $3 million. All of this came to light when Pat Dougherty came over from the US to be president and CEO of FCA Australia in December 2014. The staff spilled the full story on Dougherty's first day. "I walked into his office and let it all out. I don't think he knew what hit him," another source said to The Age. A team of forensic accountants was brought in to investigate. The reason that this took so long to discover was that no one was paying attention. First, sales in Australia were growing under Campbell. Also, "in my opinion, back in Michigan, head office didn't have its eyes on the road. They only had eyes on the Fiat deal," an insider said to The Age. That confluence essentially provided the perfect storm for this huge spending. News Source: The AgeImage Credit: Giuseppe Cacace / AFP / Getty Images Government/Legal Chrysler Fiat lawsuit FCA

FCA recalls Fiat 500e to fix cruise control

Fiat is recalling almost 4,000 of its 500e electric vehicles because of a malfunction related to the model's cruise-control feature. The glitch causes the car's powertrain to be put into neutral under certain situations. It's the second recall on the 500e this year. Specifically, Chrysler-Fiat is recalling 3,975 cars. The issue is that the car's system can misread the motor's torque figures in cruise control, causing the sprightly EV to mistakenly shift into neutral in what was designed as a safety-precaution measure. The good news is that restarting the vehicle gets the car back to normal, but being dropped into neutral in highway mode is certainly no fun. Chrysler-Fiat said in a statement this week that it was "unaware" of injuries, accidents, or customer complaints caused by the issue. In April, the 500e was subject to a recall that impacted about 5,600 vehicles and stemmed from a March 2015 update. The update allowed the car to go into so-called "Limp Home Mode" to better extend range. The problem is that it inadvertently caused the car to stall. Range anxiety, indeed. Take a look at Chrysler-Fiat's press release on the most recent recall below. Related Video: Statement: Software Upgrade June 9, 2015 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 3,975 cars to upgrade cruise-control software. A review of warranty data led to an investigation by FCA US LLC engineers. The investigation discovered certain Fiat 500e hatchbacks were inadvertently equipped with software that may misread torque levels generated by their motors, causing them to shift into neutral – a prescribed failsafe mode. This condition may occur only while cruise-control is engaged and the driver attempts to override the feature with accelerator-pedal applications or rapid tapping of the accelerate/decelerate buttons. Restarting the vehicle restores normal function. The campaign is limited to certain model-year 2013-2015 vehicles. The Company is unaware of any related injuries, accidents or customer complaints. New software will be available when affected customers are advised of this action by FCA US. Service instructions are being sent to FCA US dealers today. Customers with questions may call the FCA US Customer Information Center at 1-800-853-1403.

Say goodbye to the Dodge Dart and Chrysler 200

Fiat-Chrysler CEO Sergio Marchionne outlined an update to the company's five-year business plan Wednesday, and among the changes, the Dodge Dart and Chrysler 200 sedans will soon be phased out. The company's presentation to investors states that the "market shift from cars to trucks and UVs [utility vehicles is] now seen as permanent shift in demand," and FCA wants to respond as quickly as possible. Killing the 200 and Dart will allow FCA to build more Jeep and Ram models at the Sterling Heights, MI, and Belvidere, IL, plants where the sedans were produced. We already knew FCA was planning to shift 200 and Dart production to Mexico, to free up the Sterling Heights facility for Ram 1500 production, and the Belivdere site for Jeep Cherokee output. The Cherokee will move from its current home in Toledo, OH, to allow for increased Wrangler production. It's no shock that FCA wants to shift its focus to crossovers and trucks. In December 2015, for example, combined sales of the Dodge Dart and Chrysler 200 were 15,310. The Jeep Cherokee, which uses the same platform as the Dart and 200, outsold both models combined, with 24,049 sales. Both the Dart and 200 had troubles from the beginning. Marchionne recently blamed designers for the 200 not receiving a Consumer Reports 'recommended' rating, and the Dart was one of the lowest-scoring cars in a CR reliability study. Featured Gallery 2013 Dodge Dart: Review View 27 Photos Related Gallery 2015 Chrysler 200 View 43 Photos Image Credit: Copyright 2016 Drew Phillips / AOL Chrysler Dodge Jeep RAM FCA confirmed