Fiat Chrysler Hit With Fine by NHTSA
Fiat Chrysler Automobiles (FCA) is having to pay a $105-million fine for recall lapses, which includes $20-million that the compacy has agreed to spend on industry outreach.
The record-setting fine is being reported by The Wall Street Journal, which also said that FCA will have to accept an independent auditor that will begin monitoring the automaker’s recall and safety processes. Fiat Chrysler will also have to buy back certain recalled vehicles as a result of the settlement. The report also says that with certain recalls, like the Jeep Grand Cherokee and Liberty SUVs with gas tanks that could potentially catch fire, the company will have to offer financial encouragement for owners to get their recall work done, or towards the trade in of the older vehicles for a new car.
SEE ALSO: Fiat Chrysler Under Investigation for Handling of Recalls
The company could potentially reduce its fine by meeting certain conditions, although details on that remains unclear at this time. In May, the National Highway Traffic Safety Administration (NHTSA) started an investigation into how Fiat Chrysler handled 20 recall campaigns and held an unprecedented hearing on July 2 in Washington, D.C. The government claims that the automaker failed to follow proper procedures for recalls and safety defects, resulting in the record fine.
It’s worth noting that the investigation did not involve the recent report of Uconnect vulnerabilities that allowed hackers to take over a Jeep Cherokee remotely.
[Source: The Wall Street Journal]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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This is a whole lot of NOT GOOD. Chrysler seems so cyclical, they'll have the world in their hands and then lose it because of suspect quality. It's happened time after time after time.