Fiat Chrysler ‘missteps’ earn sanctions
Automaker repeatedly flouted safety laws in its handling of 23 recalls, U.S. agency says
WASHINGTON— The chief U.S. auto safety regulator says Fiat Chrysler will face sanctions for violating safety laws in multiple recalls.
National Highway Traffic Safety Administration (NHTSA) chief Mark Rosekind says the agency will act before Labour Day and that the automaker will face enforcement action. But Rosekind, speaking to reporters after a public hearing Thursday on Fiat Chrysler’s handling of 23 recalls, wouldn’t say more until a comment period closes on July 17.
“There’s a pattern that’s been going on for some time,” Rosekind said, referring to the automaker’s conduct. “It’s the law; this is what you’re supposed to follow.” Depending on how NHTSA rules, the company could face millions in fines and could be ordered to repurchase faulty vehicles, accounting for depreciation. The agency has authority to fine companies as much as $35 million (U.S.) per infraction, and could find several infractions in one recall. But it’s unlikely the maximum fine would be assessed on all counts.
Rosekind spoke after NHTSA safety officials at the hearing painted an alarming picture of an automaker that repeatedly failed to provide correct information to the government, refused to carry out requested tests and botched recall repairs in a way that put consumers at risk.
“The evidence seems very straightforward,” Rosekind said.
Responding to the testimony of the regulators and victims of safety defects, Fiat Chrysler safety chief Scott Kunselman didn’t dispute the agency’s allegations. He acknowledged that the automaker failed to execute the recalls properly. Fiat Chrysler has reorganized its safety operations so that he now reports directly to CEO Sergio Marchionne, Kunselman said.
“We have learned from our mistakes and missteps,” he said.
The NHTSA held the rare hearing to listen to evidence that Fiat Chrysler misbehaved on 23 recalls involving more than 11 million vehicles.
The recalls involved problems as serious as rear-mounted gas tanks that can leak and cause fires in a crash, airbags that can explode with too much force and spew shrapnel and ignition switches that can abruptly shut off, causing engines to stall. In one recall, a recommended fix didn’t work.
In some cases, the agency has “tentatively concluded” that Fiat Chrysler violated the law. It will take written testimony for another 10 days before issuing a ruling.