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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.

Brand new cars are being sold with defective Takata airbags

If you just bought a 2016 Audi TT, 2017 Audi R8, 2016–17 Mitsubishi i-MiEV, or 2016 Volkswagen CC, we have some unsettling news for you. A report provided to a US Senate committee that oversees the US National Highway Traffic Safety Administration (NHTSA) and reported on by Automotive News claims these vehicles were sold with defective Takata airbags. And it gets worse. Toyota and FCA are called out in the report for continuing to build vehicles that will need to be recalled down the line for the same issue. That's not all. The report also states that of the airbags that have been replaced already in the Takata recall campaign, 2.1 million will need to eventually be replaced again. They don't have the drying agent that prevents the degradation of the ammonium nitrate, which can lead to explosions that can destroy the airbag housing and propel metal fragments at occupants. So these airbags are out there already. We're not done yet. There's also a stockpile of about 580,000 airbags waiting to be installed in cars coming in to have their defective airbags replaced. These 580k airbags also don't have the drying agent. They'll need to be replaced down the road, too. A new vehicle with a defective Takata airbag should be safe to drive, but that margin of safety decreases with time. If all this has you spinning around in a frustrated, agitated mess, there's a silver lining that is better than it sounds. So take a breath, run your fingers through your hair, and read on. Our best evidence right now demonstrates that defective Takata airbags – those without the drying agent that prevents humidity from degrading the ammonium nitrate propellant – aren't dangerous yet. It takes a long period of time combined with high humidity for them to reach the point where they can rupture their housing and cause serious injury. It's a matter of years, not days. So a new vehicle with a defective Takata airbag should be safe to drive, but that margin of safety decreases with time – and six years seems to be about as early as the degradation happens in the worst possible scenario. All this is small comfort for the millions of people who just realized their brand-new car has a time bomb installed in the wheel or dashboard, or the owners who waited patiently to have their airbags replaced only to discover that the new airbag is probably defective in the same way (although newer and safer!) as the old one.

One-of-four carbon fiber-bodied Dodge Challenger Demon listed for sale

Exclusivity often comes at a high price; in this case, it's $169,995. That's how much Texas exotic car dealer BJ Motors is asking for one of the four carbon fiber-bodied Dodge Challenger Demons built by Speedkore. Many enthusiasts would balk at the idea of spending Audi R8 money on a Demon, but this example isn't your average Challenger. Unveiled at the 2017 SEMA show, and upgraded with 1,400 horsepower the following year, the model ditches the standard coupe's metal body panels for carbon fiber parts to lose about 200 pounds. The example offered for sale has six miles on the odometer so odds are no one has verified its quarter-mile time. The dealer noted the Demon in its inventory is the fourth and final carbon fiber-bodied example built. It's fitted with the stock engine, meaning power comes from a supercharged, 6.2-liter V8 engine that delivers 840 horsepower and 770 pound-feet of torque when burning 100-octane race gas, or 808 horsepower and 717 pound-feet of torque when slurping pump gas. It pops a 2.9-foot wheelie as it screams to 60 mph in 2.3 seconds. The person who ordered this Demon new ticked nearly every box on the list of options. It's equipped with heated and cooled front seats, an 18-speaker sound system, plus two-tone leather and Alcantara upholstery. However, as AllPar pointed out, the dealer makes no mention of the Demon Crate, which included skinny front tires, a block-off plate for the passenger-side door mirror, and a conical air filter, among other go-fast goodies. While spending $170,000 on a Dodge Challenger sounds utterly insane, we wouldn't be surprised if this rare example in like-new condition finds a new home quicker than the Demon goes down a drag strip. Dodge made 3,300 units and stock, metal-bodied examples with delivery mileage sold for an average of $143,000 in 2018, according to Hagerty. AllPar learned Speedkore charged $90,000 for the carbon fiber conversion. The equation tilts in favor of the buyer, which suggests the car's next owner may be more of an investor than an enthusiast. If you're more into classics, Speedkore also gave a 1970 Charger the carbon fiber treatment and rounded out the modifications with a 996-horsepower Demon crate engine. Alternatively, if you have a family to haul, the company made a carbon fiber-bodied Charger with 1,525 horsepower at the crank when running 26 pounds of boost. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences.