Fiat Chrysler Chased for $105M, Buybacks over Recall Mishandling - Press Examiner
“This is significantly different than just a normal recall”, said Peter Kitzmiller, president of the Maryland Automobile Dealers Association. As part of the agreement, FCA must buy the affected vehicles at a price that includes “a reasonable allowance for depreciation”, with a 10-percent bonus given to owners who have not gotten the recall repairs completed, The Detroit News reports. Fiat Chrysler will be paying $105 million, the largest recorded penalty to ever be imposed by the National Highway Traffic Safety Administration (NHTSA), for the company’s lax in security of millions of their vehicles. The two sides have been engaged in discussions since NHTSA held a July 2 public hearing on Fiat Chrysler’s recall performance. 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. The NHTSA took a lot of heat last year for its failure to be more aggressive with GM early on. He said he doesn’t plan to get rid of the compact SUV. NHTSA said in 2013 that more than 50 deaths had been linked to the problem. regulator has also found out that the company was guilty of not giving notice to their customers regarding the problems with their vehicles in a timely manner. Source: www.pressexaminer.com
