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$40M award for boy's death in Jeep fire upheld by Georgia high court

The Georgia Supreme Court on Thursday unanimously upheld a $40 million award to the family of a 4-year-old boy killed in 2012 when the 1999 Jeep Grand Cherokee in which he was riding was rear-ended and burst into flames. A lower court in 2015 reduced a jury verdict from nearly $150 million to $40 million. Fiat Chrysler spokesman Michael Palese said the company was "disappointed in this decision. We are considering our legal options." The Jeep's fuel tank was placed near the back of the vehicle, which plaintiffs said made it vulnerable to rear-end collisions. The Supreme Court ruling said "evidence showed that Chrysler had long known that mounting a gas tank behind the rear axle was dangerous. Evidence also showed that Chrysler's placement of the gas tank behind the rear axle was contrary to industry trends, which favored placing tanks in front of the rear axle." Fiat Chrysler lawyers said during the trial that the fire did not cause Walden's death and blamed the driver of the pickup truck that hit the vehicle. The company said Thursday it "continues to extend sympathies to the family of Remi Walden for their loss." On appeal, the company contended it was prejudicial to raise Fiat Chrysler Chief Executive Sergio Marchionne's compensation, which totaled more than $68 million, according to a company executive who testified at trial. The automaker had denied there was a safety issue and has said the vehicles were no more dangerous than comparable SUVs built at the time. The National Highway Traffic Safety Administration (NHTSA) linked more than 50 deaths to the Jeep fuel-tank issue. Under government pressure, Fiat Chrysler recalled 1.56 million 2002-07 Jeep Liberty and 1993-2004 Jeep Grand Cherokee SUVs in June 2013 to address fire risks and agreed to install trailer hitches to protect the gas tanks. The recall and a "customer satisfaction campaign" that covered the Jeep in the fatal Georgia crash occurred after Marchionne held private talks with senior U.S. Transportation Department officials in 2013. The Georgia Supreme Court opinion said the award was proper in part because Marchionne was "alleged to have specifically interjected himself in a federal safety investigation to the detriment" of the Walden family. In 2015, NHTSA announced Fiat Chrysler would pay a then-record $105 million civil penalty over lapses in safety recalls involving millions of vehicles, including older Jeep SUVs for fire risks. Reporting by David ShepardsonRelated Video:

Ford extends shutdown, Stellantis confirms layoffs due to chip shortage

Ford and Stellantis this week announced new production cuts due to the global semiconductor shortage, with popular models including the Ford F-150 and Jeep Grand Cherokee facing cuts. Stellantis plans to temporarily lay off workers at one facility as production is curtailed.  According to Automotive News, Ford is extending shutdowns at some of its North American facilities into May. The Blue Oval has been forced to reduce or idle production of both its redesigned F-150 pickup and the popular Explorer due to the chip shortage. The Mustang, Transit, Edge, Lincoln Nautilus and Aviator will also continue to be affected. Stellantis is planning to temporarily lay off workers at a Jeep plant in Detroit during April and May due to a shortage of semiconductor chips. The company will cut two work crews at its Jefferson North plant in Detroit for three weeks starting April 26, then call them back and lay off a third crew from May 17 through the week of May 31, according to a schedule obtained by Bloomberg News. The plant on Detroit’s east side normally operates two shifts with three work crews six days a week to keep it running 20 hours a day. “Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry,” company spokeswoman Jodi Tinson said in a statement. “Due to the unprecedented global microchip shortage, Jefferson North will adjust its production schedule through the end of May.” Jefferson North employs about 4,800 hourly workers and makes the Jeep Grand Cherokee, the top-selling Jeep model last year, and the Dodge Durango SUV. A redesigned version of the Grand Cherokee is scheduled to start production in August, according to researcher AutoForecast Solutions. This article contains reporting from Bloomberg. Plants/Manufacturing Ford Jeep Lincoln Technology chip shortage

Toyota tops Kelley Blue Book's Resale Value Awards

Kelley Blue Book announced its annual Best Resale Value Award winners, and we weren't too surprised to see the list dominated by Japanese automakers - mainly Toyota and Honda. KBB hands out the awards based on the projected residual value of mostly all 2013 model year vehicles, and Toyota skated home with a number of awards including 10 of the 22 overall categories and having five of its products in the top 10 for models with best resale value. KBB's Best Resale Value Awards were announced in the same week as the ALG Residual Value Awards, and there were many similarities between both lists, especially when it came to Toyota.
To come up with its winners, KBB measures depreciation over the first five years of ownership, and looks for the cars it expects to hold its value the best after this time; on average, the report says the 2013 model year vehicles will lose 61.8 percent of its value in five years. Of the 22 categories, 15 slots were filled by Toyota, Honda and Nissan products, while the Camaro and Porsche (Cayenne and Panamera) each took home a pair of awards. If Toyota has anything to be upset about in this list of cars, it's that categories for Hybrid/Alternative Energy Car and Electric Vehicle went to the Ford Fusion and Chevrolet Volt, respectively.
The overall top 10 models for the best resale value in 2013 are, in alphabetical order: