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Government Ending Jeep Investigation

The government is closing its investigation into older-model Jeeps with fuel tanks that could rupture and cause fires. The National Highway Traffic Safety Administration said Friday it has "no reservations" with Chrysler Group's plans to recall the vehicles. The agency is expected to release a report on its investigation in a few weeks. The decision ends an unusually public struggle between Chrysler and NHTSA. The agency asked Chrysler to recall 2.7 million Jeeps last June, contending that their gas tanks - which are positioned behind the rear axle - were at risk of rupturing and catching fire in rear-end crashes. Involved were Grand Cherokee SUVs from the 1993 to 2004 model years and Liberty SUVs from 2002 to 2007. Chrysler initially refused to recall the vehicles. The company said the rate of fuel leaks and fires after crashes was similar to comparable vehicles that were sold during the time in question. It was the first time in two years that an automaker had refused NHTSA's request for a recall. Chrysler later agreed to recall 1.56 million of the Jeeps and install trailer hitches on them to help protect the gas tanks. The company sent notices to the remaining customers saying their vehicles were fine if they have factory-installed or Chrysler-made trailer hitches. NHTSA said late Friday that it has been in close contact with Chrysler and will monitor the recall as it continues. Chrysler has told customers that it will start installing the hitches soon. "Consumers should have their vehicles serviced promptly once they receive final notification from Chrysler,"NHTSA said in a statement. In its own statement Friday, Chrysler said, "We share NHTSA's commitment to safety." NHTSA's outgoing chief, David Strickland, told The Associated Press in an interview last month that Chrysler had convinced NHTSA that the Jeeps were no more dangerous than similar vehicles sold at that time. "Those vehicles performed at a rate similar to their peers. That is the keystone analysis as to whether something poses an unreasonable risk to safety," Strickland said. Friday was Strickland's last day at NHTSA. He is joining Venable, a law firm. NHTSA began investigating the Jeeps at the request of the Center for Auto Safety, a Washington-based advocacy group. "It is tragic that NHTSA approved Chrysler's sham trailer hitch recall for Jeeps that explode in rear impacts," the Center for Auto Safety's director, Clarence Ditlow, said Friday.

FCA's UAW workers to get $8,010 profit-sharing payout

UAW workers at FCA will soon be receiving $8,010 checks, which represent profit-sharing based on the company's 2020 performance. Although FCA's profit margins in 2020 were slimmer than the year prior, the union-employee payouts are slightly larger, due to a change in the formula that was negotiated in 2019 and has now gone into effect. Employees are now paid $900 for every 1% of profit margin FCA achieves in its North American operations. For 2020, the company enjoyed an 8.9% profit margin, and although that was down slightly from 9.1% in 2019, the checks are larger than last year's $7,280 payout. Still, FCA employees didn't fare quite as well as their counterparts at GM, who stand to receive profit-sharing checks of up to $9,000. GM workers did even better last year, netting $10,000. UAW workers at Ford had less to celebrate. They'll receive $3,525, based on the company's 2020 performance. That's a steep drop from last year's $6,600. FCA earned $6.472 billion in North America in 2020. The company is expecting an improved financial performance in 2021, as it's expected to avoid another coronavirus-related shutdown. It's also expected to benefit from the launch of the three-row Grand Cherokee L, as well as the Jeep Wagoneer and Grand Wagoneer, all of which are high-margin products. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Google's deal with FCA is the 'first phase' of partnership

Google and Fiat Chrysler Automobiles confirmed a partnership Tuesday in which the two companies will collaborate on creating autonomous minivans. The two companies will work together to build and test approximately 100 Chrysler Pacifica hybrid minivans, and they first of the bunch could hit the road by the end of the year. This marks the first time Google has worked with a traditional automaker in designing a self-driving car since the start of its autonomous project in 2009. "FCA will design the minivans so it's easy for us to install our self-driving systems, including the computers that hold our self-driving software and the sensors that enable our software to see what's on the road around the vehicle," Google said in a written statement. "The minivan design also gives us an opportunity to test a larger vehicle that could be easier for passengers to enter and exit, particularly with features like hands-free sliding doors." "Those of us in the tech industry recognize how hard it is to build cars." – Jennifer Haroon. That could be particularly important if Google and FCA intend to launch the autonomous minivans as a competitor to traditional public transportation options. Chris Urmson, the director of Google's self-driving car project, indicated that may be a potential business model during a public meeting on autonomous operations last week. "Public transit executives could be buying autonomous minivans rather than expensive buses," he said. "Federal standards determine what kinds of vehicles cities can use for transit. This needs attention." In the Pacifica, Google's engineers get an all-new minivan. Chrysler showcased the vehicle for the first time in January at the North American International Auto Show in Detroit, and sales of the non-hybrid versions of the vans went on sale last month. FCA CEO Sergio Marchionne says further collaboration between his company and Google is possible. "This first phase of the operation is very targeted. It's designed to take Google technology into the minivan. It's very, very focused," he said, according to Automotive News. The collaboration won't be Google's first experience with hybrids. The Lexus RX 450h SUV is one of the two cars in its current test fleet, which consists of approximately 70 vehicles. With roughly 100 autonomous minivans slated to be part of the collaboration, Google's test fleet will more than double.