FCA recalls 1.9 million cars for airbag problems

FCA Us started a voluntary recall of more than 1.9 million vehicles worldwide to fix an air-bag defect linked to three deaths and five injuries. In particular, the US subsidiary of Fiat Chrysler Automobiles has set itself the goal of solving a defect that could prevent the proper functioning of airbags and pre-tensioner seat belts in an accident. The defect concerns vehicles equipped with a special control module and crash sensors with a specific design.

The problem affects U.S. vehicles sold between 2010 and 2014, including the Chrysler Sebring, 200, Dodge Caliber, Avenger, Jeep Patriot and Compass SUVs. There currently is no set date for when the required repairs will begin however FCA has stated that they no longer use the same restraint controllers and wiring in their recent cars.

This is yet another reminder that in recent years has already generated significant non-recurring costs (in Nafta countries € 770 million in 2014, € 905 million in 2015 and € 414 million year to date). "It remains unclear whether the costs related to the latter have already been earmarked: in the second quarter the company had set aside € 568 million for the defects of the airbags Takata or if they manifest themselves more in the third and fourth quarter," the Equita analysts say.

Also because, as reported yesterday by Bloomberg, Fiat Chrysler Automobiles could be in talks with the Chinese group BAIC (Beijing Automotive Industry Holding Co.) for the creation of a joint venture in China. The negotiations would be only at an early stage, but if it was confirmed the joint venture with BAIC, "would consider the strengthening of Fca in China as highly positive as the group needs to bridge the gap with its main competitors in this country", the Imi Bank analysts  indicate.