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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.

Jeep still working to improve Cherokee's 9-speed auto

Fiat Chrysler is hoping an upcoming software update will stem the tide of consumer complaints surrounding its nine-speed automatic transmission. Owners of the 2014 Jeep Cherokee have reported a number of problems on the National Highway Traffic Safety Administration's SaferCar.gov website, since the new model and its troubled gearbox arrived way back in October 2013. The software update is "intended to keep the vehicle performing as intended, and to prevent durability issues from occurring in the future," an FCA spokesperson told Automotive News, and will be available to owners of both the 2014 to 2015 Jeep Cherokee and the 2015 Chrysler 200, which also uses the 9AT. While FCA will be notifying consumers of the update, owners can also request the software reflash if they happen into their dealer before then. Despite the widely documented problems with the transmission, the only complaints on NHTSA's website relate to the 2014 Cherokee – neither the 2015 Jeep nor the 200 have received any complaints. That bodes well as FCA prepares to begin deliveries of the 2015 Jeep Renegade and launch the Fiat 500X, both of which pair the 9AT with the 2.4-liter Tigershark four-cylinder. "We have had to do an inordinate amount of intervention on that transmission, surely beyond what any of us had forecast," FCA CEO Sergio Marchionne told Automotive News. "There are things that we have done – that we continue to do. Our proactive customer care intervention has actually increased in intensity on these vehicles in 2014, especially in the second half." What's fascinating about the 9AT's problems are that they haven't been the fault of manufacturer ZF, but have related to software that wasn't "mature" and had "teething problems," Marchionne has said previously, AN reports. With the lack of criticism for the 9AT in 2015 models and this pending software update, though, here's hoping that FCA has finally figured out its fuel-sipping gearbox. Related Video:

Fiat sees demand for new hybrid 500e small car of 100,000-110,000 units a year

MILAN — Market demand for Fiat's new hybrid 500e small car amounts to around 100,000-110,000 units a year, a group executive said on Thursday, as the company offers a cheaper version of its fully-electric model (EV). Fiat maker Stellantis last month announced it would add hybrid versions of its 500e small electric car and Jeep Compass SUV, to be manufactured in Italy, amid a global slowdown in electric car sales. The "mild" hybrid 500e will combine a petrol engine and a battery, but not have a plug. The head of the Fiat brand for Europe Gaetano Thorel said in a media roundtable that market demand for the hybrid 500e was worth 100,000-110,000 units per year. The fully electric version sold fewer than 80,000 units last year. "There are many clients out there who would like to own a 500e, but cannot afford it. Now we're giving them a chance to own it," he said. The hybrid 500e will be based on the same platform as the 500e EV, while Fiat is phasing out the old version of the 500, both petrol-powered and hybrid, which was assembled in Poland. The selling price of the 500e EV starts form around 29,000 euros ($31,600), excluding government purchase incentives. It is also being launched in the United States. Fiat brand CEO Francois Olivier said the hybrid 500e would cost "a few hundred euros" more than the one produced in Poland, which starts from around 18,000 euros, as it will offer further technological features. Production is expected to start in the first quarter of 2026 in the Mirafiori complex in the Fiat's hometown of Turin, in Italy. ($1 = 0.9187 euros)