FCA Issued $105 Million Penalty by NHTSA for Safety Recall Violations - Dispatch Times

Fiat Chrysler must offer to buy back from customers more than 500,000 Ram pickup trucks and other vehicles in the biggest such action in U. S. history as part of a costly deal with safety regulators to settle legal problems in about two dozen... Under the agreement with the agency, Fiat Chrysler admitted that the company violated federal rules regarding timely recalls and notifying vehicle owners, dealers and regulators of safety issues. Also, owners of more than 1 million Jeeps with rear-mounted gas tanks that are prone to fires will be given an opportunity to trade in their vehicles at rates above market value. Along with the fine, the Italian-US company will submit to an independent oversight committee which will audit the company’s recall processes for a period of three years. Fiat Chrysler is also asked to allot a $20 million budget that will go towards consumer outreach activities and in incentivizing its laborers to avoid further vehicle recalls in the future. According to the consent order, Fiat Chrysler could end up paying billions of dollars to buy back defective trucks, though the costs will probably be recovered by the automaker through the resale of the trucks. Source: www.dispatchtimes.com