TOKYO: Fiat Chrysler recently agreed to pay a record-breaking $105 million civil fine with U.S. regulators.
On July 2, the NHTSA outlined problems with 23 FCA vehicle safety recalls covering 11 million defective vehicles. NHTSA administrator, Mark Rosekind, commented on Fiat Chrysler’s fine, “Fiat Chrysler’s pattern of poor performance put millions of its customers and the driving public at risk”. In addition, Fiat Chrysler must spend at least $20 million on meeting performance requirements included in the Consent Order. A company representative noted on Monday that the NHTSA agreement gives FCA the option of repairing and reselling any vehicles it repurchases from owners. The recall covers more than one million Jeeps that have a potential to burst into flames with the fuel tank being exposed behind the rear axle as well as over 500,000 Ram Trucks and SUVs that have steering defects that may cause steering loss and result in a crash.
Along with the buybacks, WDIV-TV stated customers will able allowed to trade in more than a million Jeeps for more than market value because of vulnerable rear-mounted gas tanks.
The safety agency has been increasing its focus on auto safety violations recently and has increased efforts to punish automakers that do not adequately recall and fix defective models.
“Consumers are at the heart of this enforcement action”, said U.S. Transportation Secretary Anthony Foxx in a prepared statement. Scott Kunselman, the company’s head of vehicle safety, said it is changing the way it manages safety to follow the industry’s best practices.
For owners of 1993-1998 Jeep Grand Cherokee models, FCA is also offering to increase the trade-in allowance to be applied to the purchase of another FCA product, service or parts for those owners who would prefer this alternative over the installation of a trailer hitch.
Fiat Chrysler Automobiles has had trouble convincing drivers to bring in their recalled Chrysler, Dodge, Jeep and Ram vehicles for repairs.
An independent monitor has been assigned by NHTSA to audit the FCA’s recall processes for three years. The penalties come days after regulators separately started investigating Fiat Chrysler’s handling of recalled vehicles with possible cyber security flaws.
The fine against FCA beats the old record of $70 million assessed against Honda Motor Co. for lapses in recalls of air bags made by Takata Corp.
Some auto owners weren’t properly notified of their cars’ defects, the government says — and even when they were, the solutions Chrysler offered weren’t always timely or effective.
