(Bloomberg) -- Fiat Chrysler Automobiles NV is recalling about1.4 million cars and trucks equipped with radios that arevulnerable to hacking, the first formal safety campaign in responseto a cybersecurity threat.

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The move marks a milestone for the industry, which last year seta record with 64 million autos called back for fixes in the U.S.The National Highway Traffic Safety Administration, under fire fromCongress for not catching defects more quickly, has beenconsidering punitive action against Fiat Chrysler for failing toprotect vehicle owners.

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Unauthorized remote access to certain vehicle systems wasblocked with a network-level improvement on Thursday, the companysaid in a statement. In addition, affected customers will receive aUSB device to upgrade vehicles’ software with internal safetyfeatures.

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Fiat Chrysler was already distributing software to insulate someconnected vehicles from illegal remote manipulation after Wiredmagazine published a story about software programmers who were ableto take over a Jeep Cherokee being driven on a Missourihighway.

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The company led by Chief Executive Officer Sergio Marchionnereiterated that it’s not aware of any real-world unauthorizedremote hack into any of its vehicles and stressed that no defectwas found and that it’s conducting the campaign out of “anabundance of caution.”

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NHTSA said it encouraged the action to protect consumers againsta vulnerability that could affect a driver’s control.

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“Launching a recall is the right step to protect Fiat Chrysler’scustomers, and it sets an important precedent for how NHTSA and theindustry will respond to cybersecurity vulnerabilities,” NHTSAAdministrator Mark Rosekind said in a statement Friday.

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Expanded action

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The recall covers about a million more cars and trucks thanthose initially identified as needing a software patch. The actionincludes 2015 versions of Ram pickups, Jeep Cherokee and GrandCherokee SUVs, Dodge Challenger sports coupes and Vipersupercars.

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“That’s not a small number to go after,” Mark Boyadjis, ananalyst with IHS Automotive, said in a telephone interview. “Thisis a pretty quick response and much of it could be P.R. driven. ButI think it will keep consumers comfortable and prevent current onesand future ones from straying away from the brand.”

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Fiat Chrysler shares fell 2.5 percent, the most in two weeks, to$15.15 Friday at the close in New York. The drop pared the stock’sgain for the year to 31 percent.

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This isn’t the first time automobiles have been shown to bevulnerable to hacking. What elevates this instance is thatresearchers were able to find and disable vehicles from miles awayover the cellular network that connects to the vehicles’entertainment and navigation systems.

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That capability makes the possibility of remote hacking of carsa reality. Earlier hacks have mostly been achieved by jacking theresearchers’ laptops into diagnostic ports inside the cars.

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Fiat Chrysler’s UConnect infotainment system uses Sprint Corp.’swireless network.

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“This is not a Sprint issue but we have been working withChrysler to help them further secure their vehicles,” saidStephanie Vinge Walsh, a spokeswoman.

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NHTSA said it would open an investigation on the remedy “toensure that the scope of the recall is correct and that the remedywill be effective,” agency spokesman Gordon Trowbridge said in ane-mailed statement. The agency said its electronics andcybersecurity experts will continue to monitor hacking threats andtake action when necessary.

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Consumer confidence

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There’s a possibility the recall could affect consumerconfidence in Fiat Chrysler, even though the company isn’t the onlyone with cybersecurity challenges, said Thilo Koslowski, vicepresident and automotive practice leader at technology consultantGartner Inc.

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“It validates that cyber-hacking with cars is a serious issuethat the auto industry must pay attention to,” he said. “The autoindustry needs to develop new technology to combat thesetechnological problems.”

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General Motors Co. has a team working on cybersecurity and hashired Harris Corp.’s Exelis and other firms to develop anti-hacking systems, said Mark Reuss, the Detroit automaker’s executivevice president for global product development. GM seeks to blockhackers’ access to its autos, he said, and if they do get in, ittries to prevent them from gaining control.

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“It’s probably one of the most important things we spend timeon,” Reuss said. “Anyone who wants to do something like that willprobably get on, so you have to look at what happens when theydo.”

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GM has worked with the U.S. military and with Boeing Co. on itsanti-hacking systems, he said.

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Proposed legislation

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Senators Edward Markey of Massachusetts and Richard Blumenthalof Connecticut, both Democrats, introduced legislation on July 21that would direct NHTSA and the Federal Trade Commission toestablish rules to secure cars and protect consumer privacy.

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The senators’ bill would also establish a rating system toinform owners about how secure their vehicles are beyond anyminimum federal requirements. The lawmakers released a report lastyear on gaps in car-security systems, concluding only two of 16automakers had the ability to detect and respond to a hackingattack.

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Markey questioned why it took nine months after learning aboutthe security gap for Fiat Chrysler to order a recall.

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“There are no assurances that these vehicles are the only onesthat are this unprotected from cyberattack,” he said Friday in ane-mail. “A safe and fully equipped vehicle should be one that isequipped to protect drivers from hackers and thieves.”

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Representatives Fred Upton and Frank Pallone, leaders on theHouse Energy and Commerce Committee, sent letters to 17manufacturers and NHTSA in May to gather information about how theindustry is addressing cybersecurity.

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“As the underlying technologies seemingly evolve by the day, sotoo must our manufacturers and regulators keep pace to protectdrivers from these growing threats,” the Michigan Republican andNew Jersey Democrat said in a statement Friday.

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--With assistance from Patrick Ralph in New York, David Welch inSouthfield, Michigan, and Jordan Robertson in Washington.

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Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.

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