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NHTSA preparing to wallop FCA, automaker 'failed to do its job'

As embattled the National Highway Traffic Safety Administration may be, but that certainly doesn't mean it isn't willing or able to put the smack down on automakers that violate its recall procedures. Following a public hearing on Thursday, the government safety arm is preparing what will likely be some very serious punishments for Fiat Chrysler Automobiles. FCA stands accused of mishandling 23 individual recalls covering some 11 million vehicles since 2013, with NHTSA claiming the Italian-American automaker kept it "in the dark," failing to notify the government of safety defects. Uncle Sam also alleges that FCA failed to notify consumers of important safety notices and didn't provide a steady supply of replacement parts. For these charges, the automaker could be fined up to $35 million per recall, which could mean a maximum of $805 million in fines. FCA could also be forced to buy back the unrepaired vehicles. "We have serious concerns with Fiat Chrysler notifications to owners and to NHTSA about its recalls. In every one of the 23 recalls, we have identified ways in which Fiat Chrysler failed to do its job," Jennifer Timian, the head of the Office of Defects Investigation, said during the FCA hearing, The Detroit News reports. The company also "repeatedly failed to provide NHTSA with other critical information about its recalls, including changes to the vehicles impacted by the recalls and its plans for remedying those vehicles." Fiat Chrysler, for its part, didn't really fight back during its hearing, although Scott Kunselman (shown above during the hearing), the senior vice president of vehicle safety and regulatory affairs at FCA, did tell The News that, "We absolutely had no mis-intent." "The plan is to move forward," Kunselman said, adding that the company has "fallen short," and that "some of the things we've done were sloppy." NHTSA administrator Mark Rosekind told The News that the regulator would issue its sanctions by the end of July, adding that he saw no way that FCA could avoid punishment.

Rising aluminum costs cut into Ford's profit

When Ford reports fourth-quarter results on Wednesday afternoon, it is expected to fret that rising metals costs have cut into profits, even as rivals say they have the problem under control. Aluminum prices have risen 20 percent in the last year and nearly 11 percent since Dec. 11. Steel prices have risen just over 9 percent in the last year. Ford uses more aluminum in its vehicles than its rivals. Aluminum is lighter but far more expensive than steel, closing at $2,229 per tonne on Tuesday. U.S. steel futures closed at $677 per ton (0.91 metric tonnes). Republican U.S. President Donald Trump's administration is weighing whether to impose tariffs on imported steel and aluminum, which could push prices even higher. Ford gave a disappointing earnings estimate for 2017 and 2018 last week, saying the higher costs for steel, aluminum and other metals, as well as currency volatility, could cost the company $1.6 billion in 2018. Ford shares took a dive after the announcement. Ford Chief Financial Officer Bob Shanks told analysts at a conference in Detroit last week that while the company benefited from low commodity prices in 2016, rising steel prices were now the main cause of higher costs, followed by aluminum. Shanks said the automaker at times relies on foreign currencies as a "natural hedge" for some commodities but those are now going in the opposite direction, so they are not working. A Ford spokesman added that the automaker also uses a mix of contracts, hedges and indexed buying. Industry analysts point to the spike in aluminum versus steel prices as a plausible reason for Ford's problems, especially since it uses far more of the expensive metal than other major automakers. "When you look at Ford in the context of the other automakers, aluminum drives a lot of their volume and I think that is the cause" of their rising costs, said Jeff Schuster, senior vice president of forecasting at auto consultancy LMC Automotive. Other major automakers say rising commodity costs are not much of a problem. At last week's Detroit auto show, Fiat Chrysler Automobiles NV's Chief Executive Officer Sergio Marchionne reiterated its earnings guidance for 2018 and held forth on a number of topics, but did not mention metals prices. General Motors Co gave a well-received profit outlook last week and did not mention the subject. "We view changes in raw material costs as something that is manageable," a GM spokesman said in an email.

Mopar boss promoted at FCA, still runs Mopar

Fiat Chrysler Automobiles is appointing Pietro Gorlier as its new chief operating officer for components. The change in title is effective June 30 and means that he reports directly to Sergio Marchionne. He already runs Mopar globally. Gorlier is replacing Eugenio Razelli, who is leaving the automaker. Even with the new position, Gorlier continues to be the boss at Mopar and retains his seat on FCA's global executive council, which is the company's top decision-making group. This is essentially one more step up the ladder for the Turin-born executive. Gorlier became CEO of Mopar service, parts, and customer care for FCA US in 2009 and took over that role worldwide in 2011. FCA announces new appointment Fiat Chrysler Automobiles N.V. (NYSE: FCAU / MI: FCA) announced today that effective June 30, 2015, Pietro Gorlier is appointed Chief Operating Officer Components reporting directly to the Chief Executive Officer Sergio Marchionne. Mr. Gorlier will also retain his current responsibilities as Head of Parts & Service (MOPAR) and member of the Group Executive Council. Mr. Gorlier will succeed Eugenio Razelli, who elected to leave the Group after several years of dedicated service. "We extend our sincere appreciation to Eugenio for his leadership and contribution to the organization" said Sergio Marchionne. Pietro Gorlier is Head of Parts & Service (MOPAR) and a member of the Group Executive Council (GEC) since September 1, 2011. He joined the Group in 1989 in Iveco and held various positions in Logistics, After Sales, and Customer Care before joining the automobile business in 2006 in Network Development. He holds a Master of Economics from the University of Turin. London, 18 May 2015 Related Video: News Source: FCA Hirings/Firings/Layoffs Chrysler Fiat FCA fiat chrysler automobiles fca us