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FCA's U.S. sales chief sues company for wrongful retaliation

Some fresh controversy is brewing at Fiat Chrysler Automobiles as The Detroit News reports that the head of U.S. sales has filed a federal whistleblower lawsuit against the company.. Reid Bigland, who's also in charge of the Ram truck brand, alleges that FCA made him a scapegoat for wrongful sales inflation practices and fixing vehicle sales statistics, which are currently under investigation by federal agents. Bigland claims that FCA executives punished him for cooperating with the federal investigators in the case by cutting his pay by more than 90 percent, according to the lawsuit he filed. The plan apparently was to use the money saved to pay for fines following any settlements made with the Securities and Exchange Commission. So far, the lawsuit alleges that FCA cost Bigland over $1.8 million in income. "They had the largest growth in retail sales in 17 years last year and refuses to pay him," Deborah Gordon, Bigland's lawyer in the case, said to The Detroit News. "Why is that? Because he participated in the SEC investigation and they don't like what he said." Bigland claims he just cooperated with the SEC investigation by testifying about FCA's sales reporting, from the time he took the position to the period prior to being appointed the company's U.S. sales chief. "In late 2018, presumably as a way to wrap up their investigation with some result, the SEC suggested to plaintiff that he admit to some wrongdoing as to defendants' monthly sales reporting," Gordon further said in a statement as part of the lawsuit. "The SEC also suggested a resolution involving some penalty to FCA. Because (Bigland) had not engaged in any wrongdoing, and there was no wrongdoing, he declined to do so." However, exacerbating the issue is the fact that Bigland reportedly sold his shares in the company last year, prompting FCA to act against him even more. FCA came under fire recently by federal agents in at least two separate investigations, potentially exposing conspiracy and corruption between company executives and private entities. The investigations are being led independently by the U.S. Attorney's Office and the FBI. So far, eight convictions were reportedly secured, with one including former Fiat Chrysler Automobiles Vice President Alphons Iacobelli, as one of the defendants. Iacobelli was one of the former top labor-relations executives for the automaker.

2015 Ram ProMaster recalled for ignition switch issue

The Basics: Ram is recalling a total of 18,121 examples of the 2015 ProMaster with production dates between October 1, 2014, and June 17, 2015. These include 16,114 of them in the US, 1,498 in Canada, 503 in Mexico, and 6 outside the NAFTA region. The Problem: The ignition switch can intermittently lose electrical contact, and this can potentially cause the vans to stall. If the problem occurs, the vehicles might also lose functionality of the airbags, anti-lock brakes, electronic stability control, and instruments. Injuries/Deaths: None reported. The Fix: Dealers will replace the ignition-switch contact holder. If You Own One: FCA filed the recall with the National Highway Traffic Safety Administration on November 25, and it has 60 days to notify owners about the campaign under federal rules. Until the repair, the company says that turning the ignition off and then back on can fix this problem if the switch loses contact. RECALL Subject : Intermittent Loss of Ignition Switch Contact Report Receipt Date: NOV 25, 2015 NHTSA Campaign Number: 15V799000 Component(s): ELECTRICAL SYSTEM Potential Number of Units Affected: 16,114 All Products Associated with this Recall Vehicle Make Model Model Year(s) RAM PROMASTER 2015 Details Manufacturer: Chrysler (FCA US LLC) SUMMARY: Chrysler (FCA US LLC) is recalling certain model year 2015 Ram ProMaster vans manufactured October 1, 2014, to June 17, 2015. The affected vehicles have an ignition switch that may experience an intermittent loss of electrical contact. CONSEQUENCE: An intermittent loss of contact can result in a vehicle stall and/or a partial or complete loss of the air bags, anti-lock brakes, electronic stability control and/or instrument panel cluster. Loss of functionality of these systems may increase the risk of crash and/or increase the risk of injury in the event of a crash. REMEDY: Chrysler will notify owners, and dealers will replace the ignition switch contact holder block, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is R64. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov. Statement: Ignition Contacts November 27, 2015 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 16,114 full-size vans in the U.S.

China's Geely says it has no plan to buy Fiat Chrysler — as FCA stock leaps

HONG KONG — Chinese carmaker Geely Automobile denied media speculation on Wednesday that it planned to make a takeover bid for Fiat Chryslerk Automobiles (FCA), the world's seventh-largest automaker. Geely was one of several Chinese carmakers cited in by Automotive News, which said representatives of "a well-known Chinese automaker" had made an offer this month for FCA, which has a market value of almost $20 billion. "We don't have such a plan at the moment," Geely executive director Gui Shengyue told reporters at an earnings briefing, when asked if Geely was interested in Fiat. He said a foreign acquisition would be complicated, but he did not elaborate. "But for other (Chinese) brands, it could be a fast track for their development," Gui added. However, a source close to the matter said FCA and Geely Automobile's parent firm, Zhejiang Geely Holding Group, had held initial talks late last year, without disclosing their nature. The source confirmed Geely was no longer interested in FCA, noting that the parent company had only three months ago announced its first push into Southeast Asia with the purchase of 49.9 percent of struggling Malaysian carmaker Proton, a deal that also included a stake in Lotus. Geel's denial failed to dent FCA's stock. The price of its Milan-based shares has jumped more than 10 percent to a 19-year high since Automotive News first reported on Monday, citing unnamed sources, that FCA had rejected the Chinese offer as too low. FCA stock on the New York Stock Exchange rose sharply on Monday from $11.60 to $12.38 and on Wednesday was trading at $12.84. FCA declined to comment on Wednesday. FCA Chief Executive Sergio Marchionne has repeatedly called for mergers as a way of sharing the costs of making cleaner, more advanced cars, but he has repeatedly failed to find a partner and retreated from his search for in April, saying FCA would stick to its business plan. He has also spoken of spinning the successful Jeep and Ram divisions off from FCA. Europe's largest carmaker, Volkswagen, and General Motors have both said they are not interested in talks with FCA. On Wednesday, Geely Automobile reported a doubling of first-half profit, above expectations, as cars designed with Sweden's Volvo won over domestic consumers. Volvo is a unit of the Zhejiang Geely group, and has recently announced it will share its technology with Geely.