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Weekly Recap: FCA hit with record fine as NHTSA crackdown continues

The National Highway Traffic Safety Administration slapped Fiat Chrysler Automobiles with a record fine this week that could reach $105 million. The punishment comes after NHTSA found problems with the automaker's execution of 23 recalls that affect more than 11 million vehicles. The consent agreement, announced Sunday, calls for FCA to pay a $70-million cash fine and requires the company to spend at least $20 million over a three-year period on industry outreach programs and to beef up old recall campaigns. Failure to comply will result in another $15-million fine. FCA also agreed to federal oversight, which includes an independent monitor to oversee the company's recalls. The $70-million cash fine equals a penalty NHTSA levied on Honda in January. "Fiat Chrysler's pattern of poor performance put millions of its customers and the driving public at risk," NHTSA administrator Mark Rosekind said in a statement. "This action will provide relief to owners of defective vehicles, will help improve recall performance throughout the auto industry, and gives Fiat Chrysler the opportunity to embrace a proactive safety culture." FCA called the deal a "consensual resolution," but admitted that it "failed to timely provide an effective remedy" during certain recalls. "We are intent on rebuilding our relationship with NHTSA and we embrace the role of public safety advocate," the company said in a statement. The announcement kicked off a busy week for the automaker. NHTSA agreed FCA did not need to recall 4.7 million vehicles after an investigation failed to find defects with a power module used in some Jeep, Dodge, and Ram vehicles. A Georgia judge also reduced a civil verdict involving a death in a Jeep Grand Cherokee crash. Amid all of that, the company reported net profit of about 333 million euros, or $364 million in the second quarter on Thursday. OTHER NEWS & NOTES FCA ramps up Hellcat production Despite a decidedly legal and financial week for FCA, there was still time for the performance side of the business to briefly grab the spotlight. The automaker is more than doubling its production of the Dodge Challenger and Charger SRT Hellcats in response to strong demand. The order bank opens the second week of August and production begins in September. FCA will finish up its scheduled 2015 model-year Hellcat builds, and cancel any "unscheduled" versions, though customers will get discounted pricing for 2016.

Certain Chrysler owners eligible for buyback program

Certain car owners whose Chrysler vehicles contain dangerous defects will soon have a way to get rid of their lemons without losing money. As part of an agreement with federal regulators, Fiat Chrysler Automobiles has agreed to buy back more than 500,000 vehicles susceptible to veering out of control without warning at above market-value prices. The deal mainly covers certain models of RAM trucks, the Dodge Dakota pickup and Dodge Durango SUV. Further, owners of more than 1.5 million Jeep Liberty and Grand Cherokees at heightened risk for lethal fires are eligible to trade in their vehicles at above market value or, alternately, get a gift certificate if they prefer to have repairs made. Chrysler has "a heavy responsibility to make sure the products they make are safe for the traveling public," said Mark Rosekind, administrator of the National Highway Traffic Safety Administration. "... Here, we are sending an unambiguous signal to industry that if you skirt the laws or violate the law, or don't live up to the responsibility that consumers expect, we are going to penalize you." The buy-back and trade-in options for motorists come as part of an unprecedented penalty NHTSA slapped against Chrysler for violating federal motor-vehicle safety laws. Chrysler will pay a $105 million fine, the highest ever levied by the regulatory agency. In addition to the buy-backs, Chrysler also agreed to an independent monitor for three years. Investigators had outlined problems in the company's conduct in 23 recalls that affected more than 11 million defect vehicles. As part of a consent-order agreement, Chrysler acknowledged it did not notify vehicle owners of recalls in an effective manner and did not notify NHTSA of safety problems. Though those recalls affected millions of drivers, the buy-back and trade-in options are only for a small portion of the vehicles involved. Because Chrysler struggled to fix the problem and no repair was apparent, Rosekind said the buy-backs are reserved "for customers who didn't have a remedy." Buy-backs are for trucks and SUVs affected by three recalls that occurred in 2013 (recalls 13V-038, 13V-527 and 13V-529), that addressed a rear-axle pinion nut that could come loose and cause a loss of vehicle control. Those recalls covered 579,228 vehicles, including 2009-2012 Ram 1500, 2500, 3500, 4500 and 5500 trucks, 2009-2012 Dodge Dakotas, 2009 Chrysler Aspen and the 2009 Dodge Durango.

Wolverine will drive weird custom Chrysler 300 in next X-Men movie

Fiat Chrysler loves a movie tie-in. Remember the Stormtrooper-spec Dodge Charger we messed around with? Then there was the Jeep Renegade Dawn of Justice special edition, built for Batman v. Superman. And now, it looks like the company donated a misshapen Chrysler limo for the latest film in the Wolverine series. Some movie-stalking paparazzi caught Hugh Jackman next to this odd vehicle, and you can see photos at Just Jared, a celebrity gossip site. The photogs were more concerned with the graying star, who's reprising his role as the adamantium-boned superhero for the ninth time including cameos, but we'll focus on the machine. We can see the car's rear three-quarters and not a lot else. It looks broadly based on the 300, but much longer. The Chrysler winged badge is clearly visible on the trunk, while a retro script version of the automaker's logo sits on the rear pillar. There's also an unexplained "E8" badge to the right of the driver's side taillight. And as for those lamps, it's like FCA mashed together the current 300's taillights with those from a Cadillac CT6. The trunk and rear window are the strangest elements of all. We can't figure out what's happening with the tiny rear glass, the strange curve to it, or the tiny, sloping rear deck. It's ... not pretty. From the rest of what's visible, it's clear this particular car is a limo of some kind. The front end has been modified with fat fender flares sitting over some big multispoke wheels, and the door handles have been shaved. Behind the B-pillar, it gets weird. There's a long stretch of glass and bodywork, and then a very small rear door. Ingress and egress would be tough, to say the least. There's a lot of brightwork, too, from the wheels to the thick chrome strip running below the greenhouse and onto the hood. A couple of the images give a glimpse into the interior, which is wholly different from that in the production 300. We've embedded a tweet with some of the images below. But for the full gallery, you'll need to head over to Just Jared. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Related Video: News Source: JustJared.comImage Credit: Marvel Studios Auto News TV/Movies Chrysler Luxury Sedan