Fiat Chrysler Automobiles fined for mishandling recalls
Fiat Chrysler Automobiles (FCA) is being fined $105 million for failing to correctly address several vehicle recalls involving safety issues.
The fine comes as a result of an investigation by the National Highway Traffic Safety Administration (NHTSA) into 23 of FCA’s previous recalls involving more than 11 million vehicles.
On Monday, FCA announced it has entered into a consent order with NHTSA where it admits that in three specific recall campaigns it had failed to provide a timely and effective fix.
FCA admits it also did not comply with various reporting requirements under the National Traffic and Motor Vehicle Safety Act of 1966.
In response, FCA has agreed to make a $70 million cash payment to NHTSA and to spend $20 million on industry and consumer outreach activities to enhance recall campaign completion rates.
An additional $15 million will be paid by FCA if the company fails to comply with the consent order.
An independent monitor has been assigned by NHTSA to audit the FCA’s recall processes for three years. NHTSA has the right to extend it for an additional year in the event that FCA does not comply with the consent order.
The fines come less than a week after regulators began investigating Fiat Chrysler’s handling of recalled vehicles with possible cybersecurity flaws, after hackers were able to take control of basic car functions, like breaking and steering of a moving Jeep. Those vehicles aren’t part of the settlement.
For more information on the connected car hack click here.