The National Highway Traffic Safety Administration (NHTSA) on July 26 fined Fiat Chrysler Automobiles (FCA) $105 million as a civil penalty for failing to complete 23 recalls covering more than 11 million vehicles. This is the largest fine ever levied by NHTSA. In a consent order released on, of all days, a Sunday, Chrysler admitted to violating federal rules requiring timely recalls and notifications to vehicle owners, dealers and regulators and agreed to oversight by a federal monitor for the next three years. Chrysler will pay a $70 million cash penalty and also agreed to spend at least $20 million to meet requirements of the consent order and up to another $15 million for any future violations discovered by the independent monitor. Secretary of Transportation Anthony Foxx and this to say:
Today’s action holds Fiat Chrysler accountable for its past failures, pushes them to get unsafe vehicles repaired or off the roads and takes concrete steps to keep Americans safer going forward. This civil penalty puts manufacturers on notice that the department will act when they do not take their obligations to repair safety defects seriously.
Chrysler acknowledged in a statement in its Sunday announcement that some of its recall procedures have fallen short. That in my opinion may be the understatement of the decade since the automaker failed miserably to do what was required. This company has lots of work to do to right what looks much like a ship sailing without a rudder when it comes to safety and recall issues.
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.