USA TODAY US Edition

$105M FINE FOR FIAT CHRYSLER

Record penalty cites recall shortcomin­gs

- Chris Woodyard USA TODAY

The nation’s vehicle safety agency has slapped Fiat Chrysler Automobile­s with a record $105 million fine for shortcomin­gs in reporting defects and inadequate recall procedures.

As part of its deal with the National Highway Traffic Safety Administra­tion (NHTSA), Fiat Chrysler will also be required to buy back some vehicles, offer incentives for owners to participat­e in recall repairs, and be subject to independen­t monitoring to ensure its safety program continues to meet minimum standards.

U.S. Transporta­tion Secretary Anthony Foxx on Sunday said Fiat Chrysler Automobile­s had acknowledg­ed violations of the Motor Vehicle Safety Act’s requiremen­ts to repair vehicles with safety defects. Foxx said the company will submit to “rigorous federal oversight” in the agreement, which will leave room for fine to be reduced if Fiat Chrysler shows good faith in adhering to terms of the agreement.

The agreement represents the culminatio­n of a campaign by NHTSA to call out Fiat Chrysler for its handling of 23 recalls involving 11 million vehicles. The federal agency took the unusual step of holding a hearing on the issue earlier this month where officials complained about slow production rates of replacemen­t parts needed for recalls; misinforma­tion to owners about recalls; difficulty in obtaining service appointmen­ts at dealership­s, and recall repairs that failed to adequate remedy defects.

“What you heard here is there’s a pattern that’s been going on for some time, frankly,” NHTSA Administra­tor Mark Rosekind said at the time of the hearing.

The new federal oversight, spanning the next three years, includes hiring an independen­t monitor approved by NHTSA to assess, track and report the company’s recall performanc­e.

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GETTY IMAGES
 ?? JERRY S. MENDOZA ?? Fiat Chrysler has disputed the NHTSA’s contention that the company was acting too slowly to fix 1.56M Jeep Liberty and Grand Cherokee SUVs that were susceptibl­e to fires.
JERRY S. MENDOZA Fiat Chrysler has disputed the NHTSA’s contention that the company was acting too slowly to fix 1.56M Jeep Liberty and Grand Cherokee SUVs that were susceptibl­e to fires.

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