1995 Jeep Cherokee Sport Sport Utility 4-door 4.0l on 2040-cars

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FCA fibbed on sales according to internal report

Following last week's news that Fiat Chrysler Automobiles (FCA) is under investigation by the Department of Justice and Securities and Exchange Commission for allegedly fudging sales figures, a new report in Automotive News says an internal investigation at FCA uncovered misreported sales. According to the AN story, 5,000 to 6,000 vehicles from various FCA brands were reported sold by dealers, but no customers existed for those cars. FCA sales chief Reid Bigland has already put a stop to the practice. One potential reason for the practice was to maintain the company's month-to-month sales increase streak, currently at 75 months. In April, FCA added a lengthy disclaimer to its sales announcements: "FCA US reported vehicle sales represent sales of its vehicles to retail and fleet customers, as well as limited deliveries of vehicles to its officers, directors, employees and retirees. Sales from dealers to customers are reported to FCA US by dealers as sales are made on an ongoing basis through a new vehicle delivery reporting system that then compiles the reported data as of the end of each month. "Sales through dealers do not necessarily correspond to reported revenues, which are based on the sale and delivery of vehicles to the dealers. In certain limited circumstances where sales are made directly by FCA US, such sales are reported through its management reporting system." FCA did not provide comment to Automotive News. Click through for the full story and more details. Related Video: Earnings/Financials Government/Legal Chrysler Dodge Fiat Jeep RAM sales Sergio Marchionne FCA USDOJ reid bigland

VW, Rivian, Nissan, BMW, Genesis, Audi and Volvo lose EV tax credits starting tomorrow

The U.S. Treasury said Monday that Volkswagen, BMW, Nissan, Rivian, Hyundai and Volvo electric vehicles will lose access to a $7,500 tax credit under new battery sourcing rules. The Treasury said the new requirements effective Tuesday will also cut by half credits for the Tesla Model 3 Standard Range Rear Wheel Drive to $3,750 but other Tesla models will retain the full $7,500 credit. Vehicles losing credits Tuesday are the BMW 330e, BMW X5 xDrive45e, Genesis Electrified GV70, Nissan Leaf , Rivian R1S and R1T, Volkswagen ID.4 as well as the plug-in hybrid electric Audi Q5 TFSI e Quattro and plug-in hybrid (PHEV) electric Volvo S60. The Swedish carmaker is 82%-owned by China’s Zhejiang Geely Holding Group. The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden's effort to make 50% of U.S. new vehicle sales by 2030 EVs or PHEVs. Hyundai said in a statement it was committed to its long-range EV plans and that it "will utilize key provisions in the Inflation Reduction Act to accelerate the transition to electrification." Rivian declined to comment and the other automakers could not immediately be reached for comment. Treasury also disclosed General Motors electric Chevrolet Bolt and Bolt EUV will qualify for the full $7,500 tax credit. GM said earlier it expected at least some of its EVS would qualify for the $7,500 tax credit under the new rules, including the 2023 Cadillac Lyriq and forthcoming Chevrolet Equinox EV SUV and Blazer EV SUV. Treasury said all GM EVs will qualify. Earlier, Ford Motor and Chrysler-parent Stellantis said most of their electric and PHEV models would see tax credits halved to $3,750 on April 18. Treasury confirmed the automakers' calculations. The rules were announced last month and mandated by Congress in August as part of the $430 billion Inflation Reduction Act (IRA). The IRA requires 50% of the value of battery components be produced or assembled in North America to qualify for $3,750, and 40% of the value of critical minerals sourced from the United States or a free trade partner for a $3,750 credit. The law required vehicles to be assembled in North America to qualify for any tax credits, which in August eliminated nearly 70% of eligible models and on Jan. 1 new price caps and limits on buyers income took effect.

7 months later, Jeep 'trailer hitch' recall still stalled

For the past few years, Chrysler and its CEO, Sergio Marchionne, have gone head-to-head with the National Highway Traffic Safety Administration and its boss, David Strickland, over the government safety agency's request for Chrysler to recall almost three-million Jeep vehicles due to what NHTSA says is a safety issue that has caused at least 51 deaths. After a three-year investigation and Chrysler's initial refusal to issue a recall because it deemed the vehicles safe and built to the day's federal requirements, last summer, the two parties compromised on a "voluntary campaign" to inspect 1.56 million vehicles, those being the 1992 to 1998 Grand Cherokee and 2002 to 2007 Liberty.
Those vehicles were designed with their gas tanks between the rear axle and the bumper, and NHTSA says that in rear-end collisions, damage to the fuel tank has caused fires responsible for those 51 deaths. The compromise reached last summer was that Chrysler would inspect 1.56 million vehicles and, "if necessary, provide an upgrade to the rear structure of the vehicle." Practically speaking, that meant Chrysler would replace aftermarket trailer hitches, but would take no action if a vehicle had a factory-installed hitch or an aftermarket hitch from Mopar.
A report in The Detroit News says the "voluntary campaign" is just now getting under way, with Chrysler saying last week that the design of the replacement part had been finalized and it was tooling up "to deliver the required volume." Seven months later, still in question is whether NHTSA will crash-test the fix engineered by Chrysler, noteworthy because not only did the vehicles in question pass every safety standard necessary to be cleared for sale at the time, there are still questions (to those of us on the outside) as to how the Jeeps at issue fare among their peers in such incidents. Either way, Chrysler and NHTSA apparently still disagree on the efficacy of the remedy itself: the carmaker says it might help in low-speed crashes but not high-speed collisions, a position the NHTSA is at odds with. All of this means the campaign doesn't yet have an end in sight.