USA TODAY US Edition

Feds probe Fiat Chrysler recalls

NHTSA says carmaker’s fixes slow, inadequate

- Chris Woodyard Contributi­ng: James R. Healey

Federal regulators on Monday said a public hearing July 2 to investigat­e whether Fiat Chrysler Automobile­s has failed to properly carry out 20 recalls involving about 10 million vehicles.

National Highway Traffic Safety Administra­tion Administra­tor Mark Rosekind said FCA has low recall completion rates, inadequate fixes and a lack of timely notificati­on for owners.

“Our actions are broader than one recall,” he said. “We need to determine whether there is a pattern here.”

FCA said in a statement that its completion rate for recalls “exceeds the industry average, and all FCA US campaigns are conducted in consultati­on with NHTSA.” It says its completion rate on active recalls is 77% vs. an industry average of 70%.

Rosekind said the hearing will be broad and that the agency can recommend that Fiat Chrysler buy back or replace vehicles, which has happened in at least one case before. The hearing will have testimony and allow both sides to present evidence.

Fiat Chrysler and NHTSA have been feuding about recalls since last year. In November, CEO Sergio Marchionne disputed NHTSA’s contention that FCA had a “woeful” recall repair rate on a recall of 1.56 million Jeep Liberty and Grand Cherokee SUVs with gas tanks mounted in a way that they can catch fire when struck from the rear. The fix involves adding a trailer hitch. At the time, Fiat Chrysler said it had a 13.2% repair rate on Liberty and 3.5% on Grand Cherokee.

Now, the recall is up to only 21% recall repair rate, Rosekind said, although in a media call he couldn’t offer comparison­s to an industry average.

On Monday, Rosekind said the issues go beyond that recall and are not based on one incident. “When you look the pattern,” he said, action had to be taken.

“It is not enough to identify defects. Manufactur­ers have to fix them,” Rosekind said. “Significan­t questions have been raised as to whether this company is meeting its obligation­s to protect the drivers from safety defects, and today we are launching a process to ensure that those obligation­s are met.”

 ?? SIMON DAWSON, BLOOMBERG ?? FCA said its recall completion rate “exceeds the industry average.”
SIMON DAWSON, BLOOMBERG FCA said its recall completion rate “exceeds the industry average.”

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