Fiat Chrysler US earnings fall 3 pct. on recall penalties

After a team of white hat hackers exploited a vulnerability through a Jeep Cherokee’s UConnect system that allowed them to remotely seize control of the auto, Fiat Chrysler announced a 1.4-million vehicle recall and a vow to fix the problem.

Apart from Fiat Chysler, Harman’s customers for infotainment systems include BMW, Daimler and Volvo among many others.

If a court decides that the case should be class action, there could be hundreds of thousands of people who would potentially have a claim. Following the event, the debate regarding the safety ofconnected vehicles intensified.

The suit was filed by Brian Flynn of Belleville and by George and Kelly Brown of Pacific. There is no good reason for this current design.

“We do not believe this problem exists in any other vehicle outside of Fiat Chrysler”, Harman Chief Executive Dinesh Paliwal said in an interview with Reuters on Tuesday.

Uconnect also make use of software and network connectivity offered by other firms. The company said it’s “conducting a remedial campaign as a safety recall in the interest of protecting its customers” out of “an abundance of caution”.

“We want to make sure the automakers and regulators stay ahead of this”, said Mark Rechtin, autos editor for Consumer Reports.

Harman Kardon-branded infotainment products contribute to Fiat Chrysler’s Internet-connected Uconnect telematics system, which is a suite of driver aids and entertainment services. Following the public revelation of their work, the National Highway Traffic and Safety Administration pressured Chrysler to stage an official recall, mailing a USB drive with a Uconnect security update to all affected vehicle owners.

In fact, Paliwal suggests, the issue was not one of its own hardware, but merely of the cloud aspect that Fiat Chrysler paired it with. GM, Ford, and Toyota were all hit with a similar lawsuit in March of this year, based in part on earlier vehicle hacking research by Valasek and Miller.

With the kind of fan following we have for SUVs in India, Fiat has been considering bringing in the Jeep brand here.

Mercedes-Benz spokesman Benjamin Oberkersch said the German manufacturer is taking comprehensive measures to protect its cars from hacking attacks.