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Fires, deaths continue after Jeep fuel tank recall

As Kayla White slowed her SUV behind two other cars to exit a suburban Detroit freeway on Veterans Day, it was rammed from behind by a Cadillac STS. Her red 2003 Jeep Liberty bounced off a Nissan in front of it, rolled onto its side and exploded in flames. Other drivers ran to help but were forced back by the heat. Firefighters arrived in just three minutes but were too late. White, a 23-year-old restaurant hostess who was eight months pregnant, died of burns and smoke inhalation. White is one of more than 70 people killed in fires involving older Jeeps with plastic fuel tanks mounted behind the rear axle. Fiat Chrysler, which makes Jeeps, recalled 1.56 million of them in June 2013 under pressure from US safety regulators. But only 12 percent of the SUVs have been repaired in the 18 months since the recall, a much slower pace than usual. And White's Jeep was not among those fixed. Last week, prosecutors charged the Cadillac driver with committing a moving violation that caused a death. But safety advocates and the lawyer for White's family say the blame belongs as much, if not more, on Chrysler and an auto-industry safety system that moves too slowly to prevent tragedy. The rear-mounted tanks have little structure to protect them if struck from behind, making them susceptible to punctures and fires. Moving the gas tank in front of the axle would be expensive and difficult. So Chrysler's remedy involved installing trailer hitches on the rear of the Jeeps as an extra layer of protection. Government testing showed the hitches protected the tanks in crashes up to 40 mph when stationary Jeeps were hit from behind. But at higher speeds, they wouldn't help. White tried to get the repair done a few weeks before her death but was told by a Jeep dealer that parts weren't available, according to Gerald Thurswell, her family's lawyer. He wouldn't identify the dealership, and his contention could not be independently verified by The Associated Press. Thurswell contends the gas tank ruptured, spilling fuel that touched off the fire. A Chrysler spokesman expressed sympathy to White's family but said the company had no written proof that she asked a dealer about the recall. Two crash reconstruction experts interviewed by the AP say gas wouldn't have spilled from White's Jeep if the tank had been mounted in front of the rear axle. Both say a hitch might have prevented the tank from being damaged, but because both vehicles were in motion, neither expert could say for sure.

Jeep and Ram could be spun off from FCA, says Marchionne

Jeep is surely the biggest single feather left in the cap of the Fiat Chrysler Automobiles portfolio. Under Sergio Marchionne's leadership, Jeep went from fewer than 500,000 annual sales in 2008 to 1.4 million in 2016, and is on track for 2 million by 2018. Add in the brand's legacy, status as one of the most recognizable nameplates in the world, and rabid fan base, and Jeep has extraordinary monetary value to its parent company. Investors and analysts have certainly noticed Jeep's inherent value. According to The Detroit Free Press, Morgan Stanley's Adam Jonas asked FCA chief Sergio Marchionne if he would ever consider spinning Jeep and Ram, FCA's dedicated truck brand, into a separate corporate entity, and he responded with a simple "Yes." Jonas estimated Jeep's worth in January of this year at $22 billion. Ram was valued at $11.2 billion. Marchionne has a history of spinning off brands while keeping them part of FCA's corporate umbrella. The most noteworthy example of this value maximization was with Ferrari, which now trades on the New York Stock Exchange and rakes in $3.4 billion in annual revenue and close to $435 million in net income, reports the Free Press. Marchionne still serves as chairman and CEO of Ferrari, and Fiat heir John Elkann owns 22 percent of the Italian marque's shares. Even if the offloading of Jeep and Ram into a separate entity would amount to little more than a profit-driven ownership change on paper, it would be huge news to the brands' loyal fanbases. In any case, such a move would likely take years to actually happen and probably wouldn't mean much at all to the products that Jeep and Ram produce. In other words, Jeep fans can keep the pitchforks in the shed ... for now. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

May 2016: FCA wins, Ford and GM stumble on weak car volumes

The May 2016 sales numbers are in, and it looks as though FCA is getting some vindication for boldly cancelling two slow-selling car models. Meanwhile, Ford saw overall sales dip and GM's May volume took a big dive versus the same month in 2015. While Marchionne's decision to axe the Chrysler 200 and Dodge Dart has drawn criticism as being short-sighted, it's working for FCA so far. Although the Dart and 200 aren't out of production yet and no capacity has been shifted to crossover or trucks, May's numbers show that the emphasis on Jeep and Ram models makes sense right now. FCA's US sales rose 1 percent last month compared to May 2015, putting the year-to-date total at 955,186 vehicles, an increase of 6 percent compared to the same period last year. Standouts included the Jeep Renegade, Compass, and Patriot, and the Fiat 500X. Ram pickup sales were down 3 percent. And your fun fact is that Alfa Romeo sales were up precisely 10 percent, for a total of 44 4Cs sold versus 40 in the same month last year. At FoMoCo, the Ford brand took a hit to the tune of 6.4 percent from May 2015 to 2016, registering 226,190 sales last month. Lincoln showed improvement on its modest numbers, going from 9,174 to 9,807, a 6.9 percent increase. Overall, Ford was down 5.9 percent for the month to 235,997; despite the slump, year-to-date total Ford sales are up 4.2 percent to 1,112,939. Strong sellers included Escape, Expedition, F-Series, and Transit - big stuff. Most small and/or efficient models (Fiesta, Focus, Fusion, C-Max) saw sales slides. Fusion sales were also down, likely due to effects of model changeover to the freshened 2017 model. Ford has promised four new crossovers and SUVs by 2020 and if things keep trending this way the company will be able to sell them, but things could change in the next four years. GM saw the worst of it for domestic brands. Retail and fleet sales were down for each of the four divisions, with the May 2016 total dropping 18 percent to 240,450 vehicles. GM's year-to-date sales are down 5.0 percent in 2016 to 1,183,705. Both the Sierra and Silverado were down significantly, and the majority of Chevy, Buick, GMC, and Cadillac nameplates saw sales decreases, with both small cars and larger utilities included. Not even big stuff could help GM this month, it seems. We'll have more on the rest of the industry's May sales as those figures trickle in.