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Georgia judge slashes verdict to $40M in Jeep fire case

A judge in Georgia has drastically reduced the damages that Fiat Chrysler Automobiles will have to pay to the family of Remington Walden, who a court said died as a result of the unsafe design of one of its vehicles. While the jury originally awarded the family $150 million at FCA's expense, Judge J. Kevin Chason cut that amount to $40 million, the Detroit News reported. The automaker may still appeal the verdict. The case dates to March 2012, when a 1999 Jeep Grand Cherokee in which four-year-old Walden was riding was rear-ended by another vehicle. Due to what the jury ruled was an unsafe fuel tank, a fire erupted, and Walden died in the fire. The family's lawyers successfully argued that the automaker knew there was a problem and didn't take sufficient action to address the issue, while FCA countered that its vehicles met the applicable safety standards when they were built. The jury found FCA 99 percent responsible for the fire and Walden's death, reserving the final one percent for the driver who caused the crash. The court awarded the Waldens $150 million in damages to be paid by the automaker: $120 million for wrongful death, and a further $30 million for pain and suffering. FCA, however, argued that the damages were disproportionate to the incident, noting that the $120 million was 11 times higher and the $30 million four times higher than any comparable awards upheld on appeal in the state. Chason agreed and cut the penalties extensively. The Walden family has reportedly accepted the reduced verdict. But according to the News, company spokesman Michael Palese said, "The reduction in the damage awards does not cure the many errors that tainted this verdict and denied FCA US a fair trial. We are considering our legal options." News Source: The Detroit NewsImage Credit: Jeep Government/Legal Recalls Jeep lawsuit court

Vile Gossip: Ladies who launch

Jean Jennings has been writing about cars for more than 30 years, after stints as a taxicab driver and as a mechanic in the Chrysler Proving Grounds Impact Lab. She was a staff writer at Car and Driver magazine, the first executive editor and former president and editor-in-chief of Automobile Magazine, the founder of the blog Jean Knows Cars and former automotive correspondent for Good Morning America. She has lifetime awards from both the Motor Press Guild and the New England Motor Press Association. Look for more Vile Gossip columns in the future. The year was 2006. We were driving a Bugatti Veyron 16.4 across the Florida Panhandle from Jacksonville to Panama City, only because I couldn't convince Bugatti to let me be the first to drive its exotic powerhouse, the world's fastest car at that time, all the way across America. One gleaming example had arrived in time for the Amelia Island Concours d'Elegance, where the journos massed for their quick test drives out the front drive of the Ritz Carlton, down a short stretch of the A1A, and back to the Ritz. Not far enough for me. I wanted to take the Veyron in all of its 16-cylinder, 1,001-horsepower, $1.3-million-dollar glory on a coast-to-coast extravaganza of a road trip. Never hurts to ask. I asked. Once the Bugatti guys stopped hyperventilating, I explained that the coastal adventure would be contained wholly within the state of Florida, from the Atlantic coast to the Gulf of Mexico. My secret destination, however, was to be Vernon, Florida, home of the great Errol Morris' classic documentary about a town in the Panhandle with the highest per-capita population of citizens who'd blown off or whacked off a limb for insurance money. (Google "Nub City.") The Swiss head of Bugatti public relations thought it hilarious. He showed up in a van with a couple of German mechanics to follow us and a failed French Formula 1 driver to serve as my chaperone. I came with a photographer from Germany and one of the most infamous of bad-boy auto magazine tech editors, the irrepressible Don Sherman. Sherman had his own reason for going, and it had nothing to do with a Veyron to Vernon. Once we gave up looking for nubbies, he ordered me to veer south to the handgrip of the Panhandle, familiarly known as the Redneck Riviera. The Don was aiming to secretly execute the Veyron's first Launch Control blastoff in captivity.

Fiat Chrysler's profit boosted by Ram and Jeep in North America

MILAN/DETROIT — Fiat Chrysler took the market by surprise by sticking to its full-year profit guidance on Wednesday after a strong performance from its Ram pickup truck in North America helped it defy an industry slowdown. Chief Executive Mike Manley, in FCA's first earnings release since a failed attempt to merge with France's Renault, also left the door open to that or other deals. "We are open to opportunity," Manley said on a call with analysts. "I have no doubt why there still would be interest in it," he added, when pressed on what it would take to revive talks with Renault. Manley declined to comment further. FCA last month abandoned its $35 billion merger offer for Renault, blaming French politics for scuttling what would have been a landmark deal to create the world's third-biggest automaker. Manley said a merger was not a must-have and Fiat Chrysler's business plan was strong. The company said it remained confident its adjusted earnings before interest and tax (EBIT) would top last year's 6.7 billion euros ($7.5 billion). Given disappointing forecasts from other automakers this earnings season, FCA's confirmation of the outlook sent Milan-listed shares in the Italian-American automaker, whose other brands include Jeep, up over 4%. A broad-based auto sales downturn has rattled the sector, forcing FCA's competitors — including Renault, Daimler and Aston Martin — to cut their sales forecasts after second-quarter results, while U.S. carmaker Ford gave a weaker-than-expected 2019 profit outlook. Japan's Nissan, a long-term partner of Renault, said it would cut 12,500 jobs by 2023 after its earnings collapsed. In the second quarter FCA's adjusted EBIT totaled 1.52 billion euros, versus analysts' expectations of 1.43 billion euros, according to a Reuters poll. FCA's U.S. shipments were down 12% in the second quarter but the group said that the successful performance of its Ram brand resulted in an enhanced share of the large pickup truck market of 27.9%, up 7 percentage points from last year. Adjusted EBIT margin in North America rose to 8.9% from 6.5% in the first quarter, thanks to strong demand for the heavy-duty Ram and the new Jeep Gladiator pickup. Chief Financial Officer Richard Palmer also said FCA expected to report up to 10% margins in the region in both the third and fourth quarters.