The Italian-U.S. company, Fiat Chrysler Automobiles NV, is expected to be slapped by federal regulators with a record $105 million penalty for failing to properly execute safety recalls, mounting scrutiny on Fiat Chrysler Automobiles' safety practices.
The National Highway Traffic Safety Administration will be penalizing Fiat Chrysler Automobiles company with the financial penalty, and audit the company's recall processes for an extended period as part of a sweeping settlement.
Anthony Foxx, the secretary of transportation stated, "This civil penalty puts manufacturers on notice that the department will act when they do not take their obligations to repair safety defects seriously."
Fiat Chrysler admitted in a consent agreement released on Sunday, that the company violated federal rules requiring timely recalls and notifications to vehicle owners, dealers and regulators.
After the Transportation Department hearing, where in under the order, Fiat Chrysler which is one of the fastest-growing car makers in the American market is also required to buy back some recalled vehicles and submit an oversight of its safety practices. Also owners of more than one million rear-mounted gas tanks Jeeps, which are actually prone to fires, have a good chance to trade in their Jeeps at rates above market value.
A representative from Fiat Chrysler stated, "We also accept the resulting consequences with renewed resolve to improve our handling of recalls and re-establish the trust our customers place in us."
Mark R. Rosekind, who took over as the administrator of the highway safety agency last December, stated, "Fiat Chrysler's pattern of poor performance put millions of its customers, and the driving public, at risk," "We need a proactive safety culture in this country." Mark R. Rosekind also said, "When you have a horrible tragedy, honestly, that's what triggers big change."
In recent years, Fiat Chrysler's sales in the United States have been more profitable than the rest in the automaker industry. Fiat Chrysler's sales increased 6.1 percent from the same period in 2014, compared with a 4.4 percent increase for the overall market.
