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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.

Fiat Chrysler profit up as it closes in on retiring its debt

MILAN — Fiat Chrysler Automobiles reduced its debt by more than expected in the first quarter, putting the carmaker well on course to become cash positive later this year. Chief Executive Sergio Marchionne expects to cancel all debt during 2018 — possibly by the end of June — and generate around 4 billion euros ($5 billion) in net cash by the end of the year. Marchionne has said that forecast does not include any one-off measures, nor the impact of the planned spinoff of parts maker Magneti Marelli, which he hopes to execute by early 2019. The world's seventh-largest carmaker said on Thursday net debt had fallen to 1.3 billion euros ($1.6 billion) by the end of March, well below a consensus forecast of 2.6 billion euros in a Thomson Reuters poll of analysts. FCA said capital spending fell 900 million euros in the quarter due to "program timing," which analysts said implied higher investments for the rest of the year. The Italian-American group said first-quarter operating profit rose 5 percent to 1.61 billion euros, below a consensus forecast of 1.74 billion, as a weaker performance from its North American profit center weighed. Shipments there were higher due to the new Jeep Wrangler and Compass models. But currency moves hit revenues and earnings, and costs related to new product launches added to the pressure. FCA's shift to sell more trucks and SUVs boosted margins yet again in North America to 7.4 percent from 7.3 percent in the same quarter a year ago, although they were down from the 8 percent recorded in the preceding three months. Marchionne, preparing to hand over to an internal successor next year, is close to his goal of ending a margin gap with larger U.S. rivals General Motors and Ford. The 65-year-old has said becoming debt free and being able to compete on a par with U.S. peers would mean FCA no longer needed a partner to survive and could well succeed on its own. The CEO has previously said tying up with another carmaker would help to meet the huge costs in an industry investing in electric vehicles and automated driving. FCA shares fell immediately after the results, but recovered to trade up 3 percent at 19.71 euros by 1150 GMT, outperforming a 0.4 percent rise in Europe's blue-chip stock index. ($1 = 0.8214 euros) Reporting by Agnieszka FlakRelated Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Australian consumer activists destroy a Dodge Journey with a tank

An Australian couple held an event where they crushed their unreliable and frustrating Dodge Journey with a retired army tank. According to Drive, Kate and Joe Masters owned an infuriating 2010 Dodge Journey that they claim was plagued by mechanical and electrical issues. After numerous failed attempts on their part to get the issues fixed by Fiat Chrysler and Dodge Australia, the couple decided that they'd had enough. Working with Queensland consumer advocate Ashton Wood, the Masters held an event where they smashed the Dodge with a sledgehammer and fired arrows at it. Finally, they rolled out a retired Centurion Mk.V tank and proceeded to crush the doomed Dodge monster truck-style. Fiat Chrysler issued a statement refuting many of the Masters' claims about both its vehicle and the steps taken to remedy the situation. The company claims that the vehicle was serviced outside of its dealer network and that the Masters did not work through established consumer complaint channels established by the Queensland Civil and Administrative Tribunal and the Australian Competition and Consumer Commission. "We had attempted to work proactively with this customer, offering free service work and free genuine parts after their warranty had expired," FCA said in a statement. "While Dodge Australia was keen to resolve this issue, we weren't in the position to issue the demanded refund of $43,000 for a vehicle purchased in 2011, that was driven for more than 100,000 kilometers (62,137 miles) and that has no known manufacturing defects, nor had any evidence provided by the owners to substantiate these claims. Queensland senator Glenn Lazarus, who was involved with the tank event, stated that Australian motorists need better consumer protections against automotive dealerships and manufacturers. "Countries around the world have successfully implemented lemon laws to provide consumers with protection and I believe it's about time we did the same in Australia," he said. Destroying cars in a public act of frustration is nothing new. In China, a Lamborghini Gallardo owner smashed his luxury ride with a sledgehammer after he felt he wasn't given a premium experience at the dealership. Related Video: News Source: Drive.com Auto News Government/Legal Weird Car News Dodge SUV Military Videos viral video dodge journey tank queensland crushed publicity stunt