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Fiat Chrysler to get $105M fine from NHTSA for recall woes

The National Highway Traffic Safety Administration is about to send a powerful message to automakers doing business in the United States, assuming reports of an upcoming $105 million fine against Fiat Chrysler Automobiles comes to fruition. In addition to the record-setting monetary fine, according to The Wall Street Journal, FCA will have to accept an independent auditor that will monitor the company's recall and safety processes and will be forced to buy back certain recalled vehicles. In other cases, such as with Jeep Grand Cherokee and Liberty models with gas tanks that could potentially catch fire in certain types of accidents, FCA will offer financial encouragement for owners to get their recall work done or to trade those older vehicles in on new cars, according to the report. FCA could reportedly reduce its fines if it meets certain conditions, though those remain unclear at this time. These actions against FCA are being taken after NHTSA began a probe into the automaker over almost two dozen separate instances where the government claims FCA failed to follow proper procedures for recalls and safety defects. Included in those safety lapses are more than 11 million vehicles currently in customer hands. These penalties and fines are separate from the investigation over security problems with Chrysler's Uconnect system that allowed hackers to obtain remote access into key vehicle systems in 1.4 million vehicles. Related Video: Image Credit: Marco Bertorello/AFP/Getty Earnings/Financials Government/Legal Recalls Chrysler Dodge Fiat Jeep RAM Safety fiat chrysler automobiles fine

Auto Mergers and Acquisitions: Suicide or salvation?

We love the Moses figure. A savior riding in from stage right with the ideas, the smarts, and the scrappiness to put things right. Alan Mullaly. Carroll Shelby. Lee Iacocca. Andrew Carnegie. Steve Jobs. Elon Musk. Bart Simpson. Sergio Marchionne does not likely view himself with Moses-like optics, but the CEO of Fiat Chrysler Automobiles recently gave a remarkable, perhaps prophetic interview with Automotive News about his interest and the inevitability of merging with a potential automotive partner like General Motors. Marchionne has been overtly public about his notion that GM must merge with FCA. For a bit of context, GM sold 9.9 million vehicles in 2014, posting $2.8 billion in net income, while FCA sold 4.75 million units and earned $2.4 billion in net income, painting a very rosy FCA earnings-to-sales picture. But that's not the entire picture. Most people in the auto industry still remember the trainwreck that was the DaimlerChrysler "merger" written in what turned out to be sand in 1998. It proved to be a master class in how not to fuse two companies, two cultures, two continents, and two management teams. Oh, it worked for the two individuals at both helms pre-merger. They got silly rich. And the industry itself was in a misty romance at the time with mergers and acquisitions. BMW bought Rolls-Royce. Volkswagen Group bought Bentley, Bugatti, and Lamborghini, putting all three brands into their rightful place in both products and positioning. No marriages there, so no false pretense. Finally, Nissan and Renault got married in 1999. A successful marriage requires several rare elements in this atmosphere of gas fumes and power lust. But a successful marriage requires several rare elements in this atmosphere of gas fumes and power lust, the principle part being honesty. Daimler and Chrysler lied to each other. The heads of each unit, the product planners, and finance all presented their then-current and long-range forecasts to each other with less-than-forthright accuracy. Daimler was the far greater equal and no one from the Chrysler side enjoyed that. The cultures were entirely different, too, and little was done to bridge that gap. Which brings me back to the present overtures by Marchionne to GM. "There are varying degrees of hugs," Marchionne stated in the Automotive News piece. "I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you." Seriously?

Recharge Wrap-up: LA Auto Show may feature updated Cadillac ELR, Uber expands Chicago HQ

A Kentucky man has converted his 1939 Dodge pickup to an electric vehicle. Al Gajda of Lexington built the electric truck, which he now uses as his daily driver. "I take advantage of any excuse to drive it; just banging around town, errands, short runs on the interstate, delivering my granddaughter to school in the morning," he says. It is powered by a lithium-ion phosphate battery, which is mounted in a wooden box on the truck bed, and gets about 100 miles per charge. Read more at the Lexington Herald-Leader. Elon Musk will speak at the Automotive News World Congress in January. The Tesla CEO is a featured speaker for the program, "Setting the Pace in a Thriving Market." The event takes place in Detroit, which could lead to an interesting mix of people in the audience, and Musk will speak on January 13. Read more at Automotive News. Production of the Toyota Rav4 EV has ended. The shipment of the final Toyota EVs concludes Toyota's deal to source batteries from Tesla. Of the 2,600 Rav4 EVs to be produced, there are probably just a few hundred left to be sold, most of which are likely to be gone by the end of October. Read more at Inside EVs. Cadillac will likely show an improved version of the ELR at the Los Angeles Auto Show in November. The 2016 ELR will include unspecified "engineering enhancements," according to Cadillac spokesman David Caldwell. There will be no 2015 model, as the 2014 model will be sold until the 2016 ELR goes on sale in the first half 2015. Read more at Edmunds. Uber executives, along with Illinois Governor Pat Quinn, have announced a major expansion of the ride-hailing company's Chicago headquarters. Uber also plans to add 420 jobs by the end of 2016. "Uber's new expanded headquarters will allow the company to continue its rapid growth and serve its riders and drivers throughout Illinois," says Governor Quinn. Last month, Quinn vetoed legislation that would have put restrictions on companies like Uber in the state. Read more in the press release below. Governor Quinn and Uber Announce Major Chicago Headquarters Expansion Innovative Ridesharing Company to Add 420 Jobs by End of 2016 CHICAGO, Sept. 29, 2014 /PRNewswire-USNewswire/ -- Governor Pat Quinn and Uber executives today announced that the ridesharing giant is moving forward with creating 420 new jobs by the end of 2016 in a major expansion of its Chicago regional headquarters.