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FCA recalling 63k Jeeps, Vipers and Ram ProMaster City vans

Fiat Chrysler Automobiles has announced a pair of recalls cover nearly 63,000 vehicles. The bigger of the two actions covers manual-transmission-equipped vehicles from 2006, including the Jeep Liberty and Wrangler, as well as the Dodge Viper. FCA engineers uncovered that the clutch ignition interlock switches use a kind of wire that was part of a previous recall campaign. Because of this, the company said that affected vehicles may not start, although in rare cases, "if recommended starting procedures are not followed," the affected vehicles may lurch forward after turning the key. Those recommended starting procedures "include activating the parking brake, placing the shift lever in neutral and pressing the clutch pedal before turning the vehicle's ignition key." Recall number two affects the company's 2015 Ram ProMaster City cargo and passenger vans. Owners will need to report to dealers to have a piece of tape removed from the side-curtain airbags. The tape is added during assembly and in some cases, may not have been removed. That could prevent the airbags from deploying in the event of a crash. Just under 59,000 vehicles are included in the first recall, including 43,874 in the United States, 11,309 outside of North America, 2,944 in Canada and 706 in Mexico. The ProMaster City recall includes just over 3,900 vehicles. FCA claims it's unaware of any injuries, fatalities or accidents related to either recall and will perform repairs free of charge. Scroll down for the official press release on both campaigns. Related Video: Statement: Clutch Ignition Interlock Switch April 23, 2015 , Auburn Hills, Mich. - FCA US LLC is launching a voluntary recall of an estimated 43,874 older-model U.S.-market cars and SUVs equipped with manual transmissions. The Company will replace their clutch ignition interlock switches at no charge to customers. The action follows an investigation by FCA US engineers that discovered these vehicles are equipped with switches that contain a certain type of wire implicated in a previous campaign. The wire, which was temporarily substituted by a supplier for the specified material, may break. As a result, the vehicles may not start, and in rare cases – if recommended starting procedures are not followed – a vehicle may exhibit unintended movement when its ignition key is turned. FCA US is unaware of aware of any related injuries or accidents involving this population of vehicles.

Chrysler banks $507 million in Q2, trims 2013 earnings forecast

Chrysler has some good news and some bad news. First, profits were up 16 percent over the second quarter of 2012, bringing the Auburn Hills, Michigan-based manufacturer $507 million on the back of strong demand for trucks and SUVs (a recurring theme this quarter, particularly in the US). Q2 revenue was up as well, from $16.8 billion in 2012 to $18 billion in 2013. The bad news is that the Pentastar's overall earnings forecast for net income in 2013 has been trimmed from $2.2 billion to between $1.7 and $2.2 billion, according to Automotive News.
In addition to the adjusted net income forecast, Chrysler tweaked its operating profit from $3.8 billion to between $3.3 and $3.8 billion. This has gone largely unexplained by Chrysler, perhaps hoping the news of a three-percent increase in its transaction prices for Q2 will allow it to sweep this adjustment under the rug.
The star of the show for Chrysler has been its US sales, which saw a 10-percent jump, both bettering the industry average of eight percent and improving over the same stretch of 2012. As with the increase in transaction prices, Chrysler has the new Ram pickup and Jeep Grand Cherokee to thank. Perhaps most worrying from this report, though, is that every brand in the automaker's stable saw an increase in sales... except for the Chrysler brand itself.

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