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NHTSA closes investigation on 4.7M FCA power modules, no recall

FCA US hasn't had the best time with recalls as of late. Not only did the company recently agree to greater safety oversight and paid $105 million to the government, that came just days after hacking fears prompted a 1.4-million model recall campaign. However, a recent decision to close an investigation by the National Highway Traffic Safety Administration means that the automaker doesn't have to worry about another major recall possibly affecting 4.7 million vehicles, according to the agency's report (as a PDF). Last September, the Center for Auto Safety petitioned NHTSA to investigate an alleged problem with the totally integrated power module (TIPM) on these FCA US models. The group claimed that a fault with the component could cause a variety of maladies, including stalls, not starting, catching fire, unintended acceleration, and airbag non-deployment. At the time, it also submitted 70 cases where this had reportedly happened. According to NHTSA, "no valid evidence was presented in support of claims related to airbag non-deployment, unintended acceleration, or fire resulting from TIPM faults and these claims were found to be wholly without merit based on review of the field data and design of the relevant systems and components." The agency did find signs of an issue with the fuel pump relay in some Jeep Grand Cherokees and Dodge Durangos, but FCA US issued recalls for the problem in September 2014 and February 2015. Without anything else to go on, the Feds don't think it's worth investigating this topic any more.

FCA to recall nearly 900,000 vehicles that don't meet emissions standards

WASHINGTON — Fiat Chrysler Automobiles will recall 862,520 gasoline-powered vehicles in the United States that do not meet U.S. emissions standards, the Environmental Protection Agency said on Wednesday. The recall was prompted by in-use emissions investigations conducted by the EPA and in-use testing conducted by Fiat Chrysler as required by U.S. regulations, the agency said. EPA said it will continue to investigate other Fiat Chrysler vehicles that are potentially noncompliant and may become the subject of future recalls. The recall includes 2011-2016 Dodge Journeys, 2011-2014 Chrysler 200s and Dodge Avengers, 2011-2012 Dodge Calibers and 2011-2016 Jeep Compass/Patriots. Fiat Chrysler said in a statement the EPA announcement "has no safety implications. Nor are there any associated fines." "The issue was discovered by FCA during routine in-use emissions testing and reported to the agency," the company said. "We began contacting affected customers last month to advise them of the needed repairs, which will be provided at no charge." Its U.S.-traded shares were down 1 percent. "EPA welcomes the action by Fiat Chrysler to voluntarily recall its vehicles that do not meet U.S. emissions standards," EPA Administrator Andrew Wheeler said in a statement. "We will provide assistance to consumers navigating the recall and continue to ensure that auto manufacturers abide by our nation's laws designed to protect human health and the environment." Fiat Chrysler owners can continue to drive their vehicles, the government said. Due to the "large number of vehicles involved and the need to supply replacement components — specifically to the vehicle's catalytic converter — this recall will be implemented in phases during the 2019," the EPA said In January, Fiat Chrysler agreed to a settlement worth about $800 million to resolve claims by the U.S. Justice Department and state of California that it used illegal software to produce false results on Ran and Jeep vehicles. But that incident involved diesel engines. It is awaiting the outcome of a criminal probe. The hefty penalty was the latest fallout from the U.S. government's stepped-up enforcement of vehicle emissions rules after Volkswagen AG admitted in September 2015 to intentionally evading emissions rules.

Stellantis reports surprising 2020 results, is 'off to a flying start'

MILAN — Low global car inventories and cost cuts should boost Stellantis's profit margins this year, though a shortage of semiconductors and investments in electric vehicles could weigh on results, the newly-formed automaker said on Wednesday. The forecast came as Stellantis, created by the January merger of Peugeot-maker PSA and Fiat Chrysler (FCA), reported better-than-expected results for 2020 that sent its shares up around 3% in morning trading. "Stellantis gets off to a flying start and is fully focused on achieving the full promised synergies (from the merger)," Chief Executive Carlos Tavares said in a statement. Stellantis is the world's fourth largest carmaker, with 14 brands including Fiat, Peugeot, Opel, Jeep, Ram and Maserati. It said 2021 results should be helped by three new high-margin Jeep vehicles in North America and a strong pricing environment there. The U.S. market has driven profits for years at FCA and starts off as the strongest part of Stellantis. The group's guidance assumes no more significant lockdowns caused by the global COVID-19 pandemic, which shuttered auto plants around the world last spring. Stellantis should also get a lift as its starts to implement a plan aimed at delivering over 5 billion euros a year in savings, without closing any plants. Tavares has also pledged not to cut jobs. But a pandemic-related global shortage of semiconductors, used for everything from maximizing engine fuel economy to driver-assistance features, could hurt business. Auto industry executives have said the shortage should ease by the second half of 2021. Stellantis said its "electrification offensive" could also weigh on results this year. Automakers are racing to develop electric vehicles to meet tighter CO2 emissions targets in Europe and this week Volvo joined a growing number of carmakers aiming for a fully-electric line-up by 2030. Stellantis plans to have fully-electric or hybrid versions of all of its vehicles available in Europe by 2025, broadly in line with plans at top rivals such as Volkswagen and Renault-Nissan, although Stellantis has further to go to meet that goal. The carmaker is targeting an adjusted operating profit margin of 5.5%-7.5% this year. That compares with a 5.3% aggregated margin last year: 4.3% at FCA and 7.1% at PSA excluding a controlling stake in parts maker Faurecia, which is set to be spun-off from Stellantis shortly.