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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:

Stellantis expects strike to cost it $795 million in third-quarter profits

MILAN — Automaker Stellantis said Tuesday that the autoworkers strike in North America is expected to cost the company around 750 million euros ($795 million) in profits — less than its North American competitors. The Europe-based maker of Jeep, Fiat and Peugeot reported a 7% boost in net revenues to 45.1 billion euros, with production halts caused by the strikes costing the company 3 billion euros in sales through October. The net revenue boost was due to higher volumes in all markets except Asia. Chief Financial Officer Natalie Knight told journalists that StellantisÂ’ strike impact was lower than the other Big Three automakers due to its global profile as well as some high-profile cost-cutting measures, calculating the hit at around 750 million euros ($795 million.) GM, the last carmaker to reach a deal to end the strike, reported an $800 million strike hit. Ford has put its impact at $1.3 billion. “We continue to be in a very strong position globally and in the U.S. This is an important market for us, and weÂ’re highly profitable and we are very committed to our future," Knight said. “But mitigation is core to how we act, and how we proceed.” Stellantis has canceled appearances at the CES technology show in Las Vegas next year as well as the LA Auto Show, due to the strike impact. Stellantis on Saturday reached a tentative agreement with the United Auto Workers Union to end a six-week strike by more than 14,000 workers at its assembly plants in Michigan and Ohio, and at parts warehouses across the nation. Stellantis does not report full earnings for the third quarter, instead providing shipments and revenues. It said that global sales of electric vehicles rose by 37% over a year earlier, powered by the Jeep Avenger and commercial vehicle sales. North America continued to be the revenue leader, contributing 21.5 billion euros, an increase of 2% over last year, and representing nearly half of global revenues. Europe, the next biggest performing region, saw revenues grow 5% to 14 billion euros, as sales rose 11%. Related video: Earnings/Financials UAW/Unions Alfa Romeo Chrysler Dodge Fiat Jeep Maserati RAM

Dodge, Jeep and Ram could soon be owned by Chinese automakers

For the past several years, Fiat Chrysler CEO Sergio Marchionne has made it widely known that the automaker he helms is up for grabs. First, he sent an email to GM CEO Mary Barra, who immediately refused to even discuss a merger. Later, Marchionne set his sights on Volkswagen. That too was swiftly rebuffed. It seemed like no global automaker was remotely interested in a partnership. Now, Automotive News reports that several Chinese automakers have come calling, only FCA isn't ready to answer. At least not yet. The news broke this morning that a major Chinese automaker had made an offer to purchase FCA for slightly above market value. FCA refused, saying the offer wasn't quite generous enough. It's unclear which automaker made the offer, but Automotive News says there's more than one interested party. FCA representatives have recently traveled to China to meet with Great Wall Motors, while Chinese representatives were seen at FCA corporate headquarters in Auburn Hills, Mich. The Chinese government has a lot of money invested in local automakers. It's putting pressure on these automakers to expand globally, including to the United States. As it stands, it's a matter of when a Chinese automaker will start selling cars here, not if. Purchasing an established automaker with a wide range of products and a huge dealer network would do wonders in giving the Chinese a foothold here. Sure, Geely owns Volvo, but a luxury automaker doesn't have nearly as much reach as a more mainstream company like FCA. This seems like the best case scenario for both a Chinese automaker looking to move into the U.S. and for FCA, at least from a business standpoint. The latter doesn't seem to have any other interested parties. It will be interesting to see how FCA would sell a deal like this to the public. We're not sure everyone will be happy with Dodge, Jeep and Ram falling under Chinese ownership. FCA didn't turn down the Chinese because they didn't like the idea. It turned down the offer because there wasn't enough money on the table. Related Video: News Source: Automotive News Earnings/Financials Alfa Romeo Chrysler Dodge Fiat Jeep RAM