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FCA to appeal reduced judgment in Georgia Jeep case

FCA is appealing the $40 million verdict against it in a case in Georgia where a four-year-old boy died in a fire in a Jeep Grand Cherokee, according to The Detroit News. The jury originally awarded the child's family $150 million, but the judge decided to significantly to reduce the amount based on other precedents. The automaker has been considering further legal options since the decision was announced in July. The boy's death happened in 2012 when he was riding in a Grand Cherokee. The vehicle was rear-ended, and the fuel tank burst, causing a fire. This is the same issue that led to a recall of millions of the SUVs and a recent agreement with the US government from FCA to pay to get them fixed. In the original ruling, the jury said that the automaker was 99 percent responsible for the fatality and didn't adequately warn owners. It asked the company to pay $120 million for wrongful death and $30 million for his pain and suffering. FCA countered that the Jeeps met the safety standards of the time they were made. FCA requested that the jury's award be reduced in May calling the amount "grossly excessive." If the family didn't agree to a lower amount, the company also threatened to seek a new trial. Among the arguments was that $30 million was too much for the child's one minute of suffering. The parents did accept the judge's adjusted figure, though.

Feds chastise Marchionne over Jeep recall, only 13% repaired so far

Following the significant outcry surrounding the General Motors and Takata airbag safety crises this year, the National Highway Traffic Safety Administration seems to be taking a much more aggressive role in pushing owners to repair their recalled vehicles. In the agency's latest move, it's urging Jeep drivers to get their models fixed. Acting NHTSA administrator David Friedman even sent a letter to Fiat Chrysler Automobiles CEO Sergio Marchionne pressing him to get more of the SUVs fixed. The problem goes back to the recall of the 2002-2007 Liberty and 1993-1998 Grand Cherokee because of the possibility for the fuel tank to rupture in some rear crashes. The campaign affected over 1.5 million vehicles, but Chrysler initially refused NHTSA's request for a repair campaign. The automaker eventually came up with a fix that involved adding a trailer hitch to provide extra protection to the tank. The feds believe the danger "will be reduced by the remedy now offered by Chrysler," according to the statement. However, this latest push comes out of NHTSA's concern that only three percent of the affected vehicles are repaired, although Chrysler maintains some 13.4 percent have actually been fixed. The agency is asking the automaker to reach out to owners "proactively," and get them to bring the Jeeps in dealers. According to the the feds' statement, the company "has nearly 400,000 parts available" to perform the fixes, and it's still producing more. Friedman's letter to Marchionne goes even further, alleging NHTSA has received reports that dealers are turning customers away who request the recall. He asks the CEO to prove within 15 days that these claims are false. "Given the low rates of repair that Chrysler has reported more than a year after the recall, significantly more aggressive steps are required," says a portion of the note. According to The Detroit News, Chrysler has subsequently promised to speed up the recall work, vowing that all dealers will have at least 12 repair kits in stock by Monday. Further, it has announced plans to ramp up its notification campaign with Facebook ads and public service announcements. Scroll down to read NHTSA's full statement on the matter, and Friedman's letter to Marchionne can be read in PDF format, here.

NHTSA investigating why Jeep recall fix is taking so long

Jeep's saga with the National Traffic Safety Administration and the voluntary campaign to repair 1.56 million vehicles for allegedly unsafe trailer hitches, is getting yet another chapter. The controversy appeared to finally be over in January when the automaker found a supplier for the replacement parts. Nothing is ever that easy, though, and the government regulator is now requesting documents from the company to clarify why the repairs are taking so long to begin.
Jeep parent company Chrysler has until July 16 to submit documents and answers to NHTSA explaining the situation. The regulator claims that despite its compromise to inspect and repair the models with improper hitches in June 2013, Chrysler didn't find a part supplier until December and didn't order the replacements until January. The government agency believes that the first components weren't manufactured until May of this year and vehicles may not actually be repaired until as late as August. According to the report, if the Chrysler doesn't supply what NHTSA is asking for, the agency could "take additional appropriate action as warranted."
Throughout this entire process, Chrysler has asserted that the vehicles met the applicable crash test standards of the time, and it has kept NHTSA abreast of the repair activity. In a recently released statement it said that the regulator analyzed eight rear impact reconstruction tests and found the replacement hitch to be safe. To keep up with the high demand for replacements, Chrysler is working with multiple suppliers, and they are running three shifts, six days a week to get the parts ready as soon as possible.