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2.1 million vehicles recalled again over faulty airbags

Fiat Chrysler Automobiles, Honda and Toyota will recall 2.1 million vehicles to fix faulty airbag modules "after the manufacturers' original attempts to fix the defects proved ineffective in some vehicles." These vehicles had all previously been recalled, but the National Highway Traffic Safety Administration found that the airbags could still potentially malfunction. This recall will cover Acura MDX, Dodge Viper, Jeep Grand Cherokee, Honda Odyssey, Pontiac Vibe, Toyota Corolla, Toyota Matrix and Toyota Avalon models made in the early 2000s. NHTSA has reportedly received about 40 reports of airbag deployment in such vehicles, even though the vehicle had not been involved in a crash. Roughly one million of these same vehicles, all from Honda and Toyota, are also subject to recalls due to faulty Takata airbag modules, though this particular recall is for "an electronic component manufactured by TRW" that is separate from the actual airbags from Takata. According to NHTSA Administrator Mark Rosekind: "This is unfortunately a complicated issue for consumers, who may have to return to their dealer more than once. But this is an urgent safety issue, and all consumers with vehicles covered by the previous recalls should have that remedy installed. Even though it's a temporary solution until the new remedy is available, they and their families will be safer if they take the time to learn if their vehicle is covered and follow their manufacturers' instructions. A hassle is much better than a family tragedy." If you're the owner of an affected car, expect to hear more from the official automaker and government channels in short order. In the meantime, we'd suggest getting your car checked and fixed at your local dealer. The official statement and recall information can be found below. Previously Recalled Vehicle Remedies Not Working as Designed; NHTSA Announces Follow up Recall of 2.12 Million Cars and SUVs Saturday, January 31, 2015 Contact: Gordon Trowbridge, 202-366-9550, Public.Affairs@dot.gov WASHINGTON – U.S. Transportation Secretary Anthony Foxx announced today the recall of more than 2.12 million Acura, Dodge, Jeep, Honda, Pontiac, and Toyota vehicles for a defect that may cause airbags to deploy inadvertently. The recalls will provide vehicle owners with a new remedy after the manufacturers' original attempts to fix the defects proved ineffective in some vehicles.

Dodge could enter Peugeot's Le Mans-bound 9x8 hypercar in IMSA races

Fiat-Chrysler Automobiles (FCA) and PSA Group merged under the Stellantis umbrella in early 2021 to achieve economies of scale, and this benefit could surprisingly extend to racing. Executives are debating whether to give Dodge its own version of Peugeot's recently-unveiled 9x8 hypercar to race in America, according to a recent report. "While we only heard [the new rules] confirmed a week ago, it has certainly led to some very open discussion, not only about whether Peugeot might add races in the United States, but also about whether the spine of this car might have opportunities with other brands in the Stellantis Group. There are no conclusions yet, but there are now open discussions," affirmed Jean-Marc Finot, the Senior Vice President of Stellantis, in an interview with Racer. His comments refer to an agreement signed in July 2021 by the Automobile Club de l'Ouest (ACO), the Federation Internationale de l'Automobile (FIA), and the International Motor Sports Association (IMSA). They chose to align their technical regulations to let manufacturers compete in different events on both sides of the pond without going through the resource-consuming process of developing a specific car for each series. As of writing, the Le Mans Hypercar (LMH) and Le Mans Daytona h (LMDh) categories fall under the newly-announced common set of rules. On the surface, this means Peugeot could enter its 9X8 (pictured) in the WeatherTech SportsCar Championship as soon as the 2023 season. While this is seemingly under consideration, Peugeot has little to gain from winning a major race in the United States. It hasn't sold cars here since 1991, and its long-mooted comeback was canned after PSA merged with FCA. Giving a variant of the 9X8 to Dodge is a more credible possibility, according to Racer. If not Dodge, then who else? Chrysler hasn't been linked to racing or performance for decades. Jeep is no stranger to performance vehicles, but IMSA would be pushing it. Ram is Ram, while Fiat, Alfa Romeo, and Maserati are rooted in Europe. The rest of the Stellantis brands (like Opel, Lancia, and Citroen) are not distributed in America. Nothing is official, and the publication stressed it's unclear whether Dodge will commit part- or full-time to the series (assuming the program receives the green light). Finot underlined the parallel car would use the 9X8's "spine," so don't expect to see a Peugeot hypercar with a Dodge emblem driving flat-out on the Sebring International Raceway.

Fiat Chrysler dumped 40,000 unordered vehicles on dealers

In a move that echoes recent history, Fiat Chrysler has been making more cars and trucks than dealers in the U.S. are willing to accept, with Bloomberg reporting that at one point the automaker had built up a glut of around 40,000 unordered vehicles. That’s led some dealers to accuse FCA of reviving the dreaded “sales bank” accounting practice of obscuring inventory to improve the balance sheet. The company reportedly began building up its inventory of unordered cars this summer despite an industrywide slowdown in sales and an eagerness by some dealers to thin their inventories because rising interest rates are making it more expensive to hold unsold cars. The inventory build-up also coincided with Fiat ChryslerÂ’s efforts to find a merger partner, first with Renault, which fell through, then last monthÂ’s announcement that it will merge with FranceÂ’s PSA Group. FCA denies any such scheme and tells Bloomberg the rising inventory is down to a new predictive analytics system designed to better square supply with demand from dealers that is helping the company save money and narrow the numbers of unsold vehicles. The company recently agreed to pay a $40 million civil penalty to the U.S. Securities and Exchange Commission to settle a complaint that it paid dealers to report fake sales figures over a span of five years. While no one is suggesting that FCA is in dire financial straits — the company saw higher than expected earnings in the third quarter and record profits in North America — the practice has strong historical precedent by Chrysler, which built up bloated inventories in the run-up to its two federal bailouts, in 1980 and 2009. It was also common at GM and Ford during the 2000s, when all three Detroit automakers struggled with excess manufacturing capacity and plummeting sales in the lead-up to the Great Recession. Back in 2012, CFO Magazine wrote about a report that explained automakersÂ’ rationale for the practice and how it works: Say fixed costs for a given factory are $100, and that the factory can make 50 cars. Consumers, however, demand only 10. Under absorption costing, if the company makes all 50 cars, its cost-per-car is $2. If it makes only up to demand, or 10 cars, the cost-per-car is $10. Although each car adds variable costs for steel and other parts, if those costs are low, the company still has an incentive to make more cars to keep the cost-per-car down.