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Fiat Chrysler will pay $70M to settle safety disclosure suit

FCA US will pay a $70 million civil penalty to the National Highway Traffic Safety Administration for failing to submit Early Warning Report data going back to 2003. The automaker will also provide any missing data since that time, and an auditor will monitor future compliance. NHTSA says the failures to report this information "stem from problems in FCA's electronic system for monitoring and reporting safety data, including improper coding and failure to account for changes in brand names." There are no allegations of any intentional deception by the automaker. NHTSA will wrap up the latest fine with the previous consent order against FCA US earlier this year for the automaker's handling of 23 recalls. The company will know owe the safety regulator a total of $140 million in cash, and there will be possibility of $35 million more in deferred penalties if FCA doesn't comply with the agency's requests. In a statement about the fine to Autoblog, FCA US said the automaker "accepts these penalties and is revising its processes to ensure regulatory compliance." The company strongly believes that it didn't miss any safety problems over the time with this problem. Early Warning Reports include information on deaths, injuries, crashes, and other potential safety concerns, and NHTSA often uses the data in investigations for possible recalls. In September, the safety agency first announced the automaker failed to submit these documents. At the time, the regulator's administrator Mark Rosekind promised to "take appropriate action after gathering additional information on the scope and causes of this failure." FCA US also released a statement then about the lapse and said the company notified NHTSA immediately after discovering the problem. FCA US is not the first company to run afoul of NHTSA's reporting requirement. The agency fined Triumph Motorcycles and Honda this year for similar lapses. It also punished Ferrari in 2014. U.S. DOT Fines Fiat Chrysler $70 million for Failure to Provide Early Warning Report Data to NHTSA WASHINGTON – The U.S. Department of Transportation's National Highway Traffic Safety Administration has imposed a $70 million civil penalty on Fiat Chrysler Automobiles (FCA) for the auto manufacturer's failure to report legally required safety data. The penalty follows FCA's admission in September that it had failed, over several years, to provide Early Warning Report data to NHTSA as required by the TREAD Act of 2000.

FCA issuing software update for 1.4M vehicles to prevent hacking

In the wake of a Jeep Cherokee being hacked remotely while on the road through its Uconnect infotainment system, FCA US is now issuing a software update for 1.4 million vehicles in the United States. Affected customers will receive a USB stick in the mail with the improved version; owners can check this website to see if their cars are affected. A large variety of models with FCA's 8.4-inch touchscreen infotainment system are affected. They include the 2015 Chrysler 200, 2015 Chrysler 300, 2015 Dodge Charger, and 2015 Dodge Challenger; 2013-2015 Dodge Viper; 2013-2015 Ram 1500, 2500, and 3500; 2013-2015 Ram 3500, 4500, and 5500 chassis cab; 2014-2015 Jeep Grand Cherokee and Cherokee; and 2014-2015 Dodge Durango. According to FCA in its announcement, the new software "insulates connected vehicles from remote manipulation." As of July 23, the company also "fully tested and implemented within the cellular network" additional security to prevent access to many of a vehicle's systems. FCA US says that it's conducting this campaign out of an abundance of caution and disputes the notion that there's a defect with these vehicles. Beyond the demonstration of the hack in the Cherokee, the automaker says that it's unaware of any other reports of these attacks actually happening. Related Video: Statement: Software Update July 24, 2015 , Auburn Hills, Mich. - FCA US LLC is conducting a voluntary safety recall to update software in approximately 1,400,000 U.S. vehicles equipped with certain radios. The recall aligns with an ongoing software distribution that insulates connected vehicles from remote manipulation, which, if unauthorized, constitutes criminal action. Further, FCA US has applied network-level security measures to prevent the type of remote manipulation demonstrated in a recent media report. These measures – which required no customer or dealer actions – block remote access to certain vehicle systems and were fully tested and implemented within the cellular network on July 23, 2015. The Company is unaware of any injuries related to software exploitation, nor is it aware of any related complaints, warranty claims or accidents – independent of the media demonstration.

FCA revises Renault merger offer in a bid to persuade French government

PARIS – Fiat Chrysler is discussing a Renault special dividend and stronger job guarantees in a bid to persuade the French government to back its proposed merger between the carmakers, sources close to the discussions said. The improved offer, if formalized and accepted, would also see the combined company's operations headquartered in France and the French state granted a seat on its board, two people with knowledge of the matter told Reuters on Sunday. FCA spokeswoman Shawn Morgan declined to comment. The French government, Renault's biggest shareholder with a 15 percent stake, also declined to comment. A Renault spokesman did not return calls and messages seeking comment. Italian-American FCA is engaged in intensive discussions with Renault and the French government over the $35 billion merger proposal it pitched last Monday to create the world's third-biggest carmaker. The concessions being discussed are not definitive and depend on other aspects of an emerging compromise deal, both sources cautioned. They nonetheless increase the chances that the merger plan will be approved by Renault's board, on which the French state has two seats. The board meets again on Tuesday. Some analysts and French industry leaders had voiced doubts about the 5 billion euros ($5.6 billion) in claimed cost and investment savings, and whether the proposal represents a fair deal for Renault shareholders. A Renault dividend would improve the valuation in their favor, balancing a 2.5 billion euro proposed dividend to FCA shareholders. The sources did not elaborate on the potential size of a Renault payout. The merger plan presented on Monday would see the two carmakers acquired by a listed Dutch holding company whose ownership would be split equally between current FCA and Renault shareholders, after special dividend payments. FCA had proposed locating the combined group's operational head office in a neutral city, most likely London, but has now indicated readiness to base it in the greater Paris area, meeting a key French government demand, both sources said. The French government is also likely to be granted a seat on the board to reflect its 7.5 percent stake in the merged company, the people said. Nissan, whose matching 15 percent stake in its French alliance partner will also be diluted to 7.5 percent of the new group, receives a board seat under the plan unveiled on May 27.