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UPDATE: FCA Slapped with Record $105 Million Safety Penalty
The National Highway Traffic Safety Administration has levied a record $105 million in civil penalties against Fiat Chrysler Automobiles NV for delays involving 23 recalls and 11 million vehicles over the past six years.
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The National Highway Traffic Safety Administration has levied a record $105 million in civil penalties against Fiat Chrysler Automobiles NV for delays involving 23 recalls and 11 million vehicles over the past six years.
Under the consent order, FCA must pay $70 million in cash, spend at least $20 million over three years to meet performance requirements imposed by the order and forfeit as much as $15 million if it fails to meet NHTSA standards in the future.
The company is ordered to hire an independent consultant to help it create and implement more stringent procedures for complying with NHTSA recalls. FCA also must retain an independent watchdog to monitor the company's compliance over the next three years.
The order further requires the company to offer to buy back vehicles most of them fullsize Ram pickup trucks with defective tie rods and/or loose rear axle pinion nuts that haven't yet been repaired. About 579,200 affected vehicles were recalled in 2012 and 2013.
FCA also is required to launch new efforts to repair or replace some 1 million Jeep SUVs equipped with fuel tanks deemed vulnerable to catching fire in a crash. The consent agreement requires the carmaker to give owners $100 gift cards if they bring in their vehicles for repairs. FCA also must offer owners of 1993-1998 Grand Cherokees the option of a $1,000 trade-in incentive to replace their vehicles.
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