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Stellantis and LG launch joint venture for North American battery plant

Stellantis has struck a preliminary deal with battery maker LG Energy Solution (LGES) to produce battery cells and modules for North America, as the world's No. 4 automaker rolls out its 30 billion euro ($35 billion) electrification plan. Global automakers are investing billions of euros to accelerate a transition to low-emission mobility and prepare for a progressive phase-out of internal combustion engines. Stellantis and LGES's joint venture will produce battery cells and modules at a new facility with an annual capacity of 40 gigawatt hours (GWh), the two firms said on Monday. No financial details of the deal were provided. The plant is scheduled to start production by the first quarter of 2024, with groundbreaking expected in the second quarter of 2022, the companies said in their statement. Its location is under review and will be announced later. Stellantis, formed in January from the merger of Italian-American automaker Fiat Chrysler and France's PSA, has said it wants to secure more than 130 GWh of global battery capacity by 2025 and more than 260 GWh by 2030. The batteries produced under the deal will supply Stellantis' U.S., Canadian and Mexican assembly plants for installation in hybrid and fully electric vehicles, supporting its goal of e-vehicles making up more than 40% of its U.S. sales by 2030. The company, whose brands include Peugeot, Fiat, Opel and U.S. best-sellers Jeep and Ram, earlier this year announced it would invest more than 30 billion euros through 2025 on electrifying its vehicle lineup. Stellantis has said it would build three battery plants in Europe and two in North America, including at least one in the United States. Intesa Sanpaolo analyst Monica Bosio said the deal was positive, and a further step ahead in Stellantis' electrification process. It comes weeks after Stellantis and its partner TotalEnergies agreed to open up their battery cell joint venture ACC to Daimler, to expand their European sourcing of battery cells. Stellantis is also targeting more than 70% of sales in Europe to be of low-emission vehicles by 2030, and aims to make the total cost of owning an EV equal to that of a gasoline-powered model by 2026. Related video: Green Plants/Manufacturing Alfa Romeo Chrysler Dodge Ferrari Fiat Jeep Maserati RAM Citroen Lancia Opel Peugeot Vauxhall Electric Hybrid EV batteries LG

Dodge recalls 27k Darts for bracket that can disrupt transmission module

Dodge is recalling 27,520 examples of the 2013-2015 Dart with dual-clutch gearboxes. The mounting bracket for the transmission control module can affect the part's operation and cause the compacts to suddenly shift into neutral. According to the automaker, 23,688 of them are in the US, 3,376 in Canada, 5 in Mexico, and 451 elsewhere. The National Highway Traffic Safety Administration reports these examples carry build dates between February 24, 2012, and June 16, 2015. There are also no reports of accidents or injuries. Because of the way the bracket is mounted, the part can put too much force on the control module's circuit board and cause it to shift out of gear. The engine and airbags remain operable if this happens. To fix things, dealers will install a redesigned mount and replacement module. Related Video: Statement: Mounting Bracket September 14, 2015 , Auburn Hills, Mich. - FCA US LLC is recalling an estimated 23,688 cars in the U.S. to replace certain control modules and mounting brackets that may contribute to a loss of motive power. The Company is unaware of any related injuries or accidents. An FCA US investigation prompted by a small number of warranty claims discovered a control-module mounting bracket may apply too much force and disrupt the function of a circuit board within the module. This condition, unique to certain cars equipped with dual dry-clutch transmissions (DDCT), may cause the transmission to shift into neutral. However, the engine remains on and the vehicle's air-bags, as well as other safety features, are unaffected. The condition may also be preceded by the illumination of a dashboard warning light. Customers who observe this are urged to contact their dealers. The campaign is limited to certain 2013-2015 Dodge Darts equipped with DDCTs. Additional vehicles will be recalled in Canada (3,376), Mexico (five) and outside the NAFTA region (451). Affected customers will be advised when they may schedule service, which will be performed free of charge. Service will entail installation of a redesigned mounting bracket and replacement of the control module. Customers with additional questions may call the FCA US Customer Information Center at 1-800-853-1403.

Weekly Recap: FCA hit with record fine as NHTSA crackdown continues

The National Highway Traffic Safety Administration slapped Fiat Chrysler Automobiles with a record fine this week that could reach $105 million. The punishment comes after NHTSA found problems with the automaker's execution of 23 recalls that affect more than 11 million vehicles. The consent agreement, announced Sunday, calls for FCA to pay a $70-million cash fine and requires the company to spend at least $20 million over a three-year period on industry outreach programs and to beef up old recall campaigns. Failure to comply will result in another $15-million fine. FCA also agreed to federal oversight, which includes an independent monitor to oversee the company's recalls. The $70-million cash fine equals a penalty NHTSA levied on Honda in January. "Fiat Chrysler's pattern of poor performance put millions of its customers and the driving public at risk," NHTSA administrator Mark Rosekind said in a statement. "This action will provide relief to owners of defective vehicles, will help improve recall performance throughout the auto industry, and gives Fiat Chrysler the opportunity to embrace a proactive safety culture." FCA called the deal a "consensual resolution," but admitted that it "failed to timely provide an effective remedy" during certain recalls. "We are intent on rebuilding our relationship with NHTSA and we embrace the role of public safety advocate," the company said in a statement. The announcement kicked off a busy week for the automaker. NHTSA agreed FCA did not need to recall 4.7 million vehicles after an investigation failed to find defects with a power module used in some Jeep, Dodge, and Ram vehicles. A Georgia judge also reduced a civil verdict involving a death in a Jeep Grand Cherokee crash. Amid all of that, the company reported net profit of about 333 million euros, or $364 million in the second quarter on Thursday. OTHER NEWS & NOTES FCA ramps up Hellcat production Despite a decidedly legal and financial week for FCA, there was still time for the performance side of the business to briefly grab the spotlight. The automaker is more than doubling its production of the Dodge Challenger and Charger SRT Hellcats in response to strong demand. The order bank opens the second week of August and production begins in September. FCA will finish up its scheduled 2015 model-year Hellcat builds, and cancel any "unscheduled" versions, though customers will get discounted pricing for 2016.