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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

Chrysler registers Trackhawk trademark

There may not be many ways to forecast what an automaker is planning for the future, but there are some. Trademark applications are one of them, and Chrysler has just applied with the US Patent and Trademark Office to protect the name "Trackhawk." The question is, what's it planning on using it for? We don't know for sure, but we can put together an educated guess or two. And one guess is that Jeep will use the name to replace the letters SRT on the performance version of the Grand Cherokee.
How do we figure, you ask? From a number of developments. For starters, the SRT division has been reintegrated into the Dodge brand. Those letters currently appear on only two vehicles from outside the Dodge lineup: one is the Grand Cherokee SRT, and the other is the Chrysler 300 SRT. We've heard ruminations (however unconfirmed) that the latter could be either discontinued or possibly relabeled, and if the same proves true of the GC, the Trackhawk name could serve as a on-road performance counterpart to the Trailhawk label applied to off-road versions of models like the Cherokee and Renegade.
Logical it may be, but it's hardly a foregone conclusion. The Trackhawk name could just as easily be used for a new concept (like the Trailhawk name was in 2007), for another kind of trim level or for something else entirely. In fact we don't even know for sure it'll be used by the Jeep brand specifically, or used at all for that matter. Automakers have been known, after all, to register names they don't end up using.

Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.