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Chrysler set to make $266M-investment into 8-speed transmission production

Chrysler will shortly make a significant $266-million investment into its Kokomo, IN transmission factory in a bid to expand production of its eight-speed automatic transmissions. The gearboxes, which are built under license from Germany's ZF Friedrichshafen, have been well received by customers and critics, and according to an SEC filing obtained by Automotive News, the transmissions will eventually find their way to all of Chrysler's rear-drive offerings (Viper and heavy-duty Ram models, aside). According to AN, a Chrysler spokesman says the investment has not been confirmed, but once it is, it'll mark the company's latest in a growing line of investments at the facility. Chrysler has poured $1.5 billion into Kokomo since 2009.

Georgia jury awards $150 million in Jeep fire case

FCA US continues to fight allegations that some Jeep Grand Cherokee and Liberty sport-utility vehicles are unsafe because of the possibility of fires in rear-end collisions. In one recently decided case, a jury in Georgia awarded $150 million in damages to a family whose child died in a blaze in 2012 in a 1999 Grand Cherokee. The jury believed that FCA acted with "reckless and wanton disregard," and didn't do enough to warn owners, according to Reuters. The automaker was found liable for 99 percent of the damages, and the remaining one percent was for the driver who rear-ended the family's SUV. In a statement from FCA US, the company said that it is considering an appeal. Under Georgia law, the automaker was allegedly unable to present a three-year investigation of rear-impact data to jurors. This was the same information the National Highway Traffic Safety Administration used to decide that the '99 Grand Cherokee "did not pose an unreasonable risk to motor vehicle safety." The original recall for the models covered 1.56 million examples of the 2002-2007 Liberty and 1993-1998 Grand Cherokee. With the fuel tank located between the rear axle and bumper, NHTSA and FCA eventually agreed to install a trailer hitch for extra protection. A further 1.2 million 1999-2004 Grand Cherokees owners received notice of a customer service action to have their vehicles inspected, though no hitch installed. Subsequent tests showed this remedy to be effective for impacts below 40 miles per hour. The automaker has maintained the SUVs met the applicable safety standards of the period when they were built. The company was chastised by NHTSA last year for low repair rates of the problem. FCA US LLC Statement Regarding Walden v Chrysler Group Verdict: April 2, 2015 , Auburn Hills, Mich. - FCA US is disappointed and will consider an appeal of this verdict. It is unfortunate that under Georgia Law the jury was prevented from taking into account extensive data submitted to NHTSA during a three year investigation, which included more than 20 years of rear impact accident data for tens of millions of vehicles. This and other information provided the basis for NHTSA's determination that the 1999 Jeep Grand Cherokee did not pose an unreasonable risk to motor vehicle safety.

470,000 Jeep Liberty, Chrysler 200, and Dodge Avenger models recalled for restraint defect

Fiat Chrysler Automobiles said on Friday it is recalling 470,000 vehicles worldwide to replace a component that may inhibit deployment of the vehicles' active head restraints in the event of a crash. Around 414,000 of those vehicles were sold in the United States. Apparently, "a component common to the modules of certain vehicles may degrade after extensive vehicle use." The recall covers 2012 Jeep Liberty sport utility vehicles and 2012-13 Chrysler 200 and Dodge Avenger midsize cars. FCA says a warning light may alert owners to the problem. The Italian-American automaker said it is unaware of any injuries or accidents related to the recall. The U.S. National Highway Traffic Safety Administration opened an investigation into the issue in June. (Reporting by David Shepardson; Editing by Steve Orlofsky) Related Video: