$105M FINE FOR FIAT CHRYSLER
Record penalty cites recall shortcomings
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.