Fiat Chrysler buyback, fines could surpass $1 billion - Detroit Free Press
"We are sending an unambiguous signal to industry, that if you skirt the laws or violate the laws or you don’t live up to the responsibility that consumer need or expect, we are going to penalize you," U. S. Transportation Secretary Anthony Foxx... A new tougher era of automotive regulation was in full bloom Monday as Foxx and National Highway Traffic Safety Administrator Mark Rosekind held a news conference to answer questions about historic penalties and the industry's largest-ever vehicle... The civil penalties totaling $105 million were levied because of FCA's poor track record with 23 recalls involving 11 million vehicles over several years. It can also apply $20 million towards its obligations in the consent order and will be able to avoid $15 million of the penalties if it meets certain performance targets. "FCA US does not expect that the net cost of providing these additional alternatives will be material to its financial position, liquidity or results of operations," the automaker said in a statement Monday. It covers Ram pickups and Dodge SUVs because they can lose power steering while in motion or have axle problems. The agreement also compels the automaker to offer cash incentives to the owners of 1 million Jeep Grand Cherokees that are already under recall to bring in their vehicles for repair. Source: www.freep.com
