Report: Feds To Hit Fiat Chrysler With Record $105M Fine Over Recalls

[Ivan Leon]

Fiat Chrysler has recently drawn the ire of the National Highway Traffic Safety Administration over “a litany of failures” with millions of vehicle recalls, including older Jeeps linked to fatal fires.

According to a Wall Street Journal report, we now know Fiat Chrysler will face penalties from the feds, to the tune of $105 million.

The Wall Street Journal was the first to report on the fine and settlement between NHTSA and Fiat Chrysler.

( http://www.wsj.com/articles/regulat...105-million-fine-for-recall-lapses-1437874509 )

In addition to the fine, a record penalty from NHTSA, the automaker will also take on an independent monitor, to review their recall processes and buy back some recalled vehicles from customers.

Fiat Chrysler will also reportedly offer cash to owners of 1993 to 2007 Jeep Grand Cherokee and Liberty SUVs, to bring them in for repairs.


http://jalopnik.com/report-feds-to-hit-fiat-chrysler-with-record-105-mill-1720242730

 

[Ivan Leon]

Fiat Chrysler’s slow moving, dangerously ineffective recall finally prompted the Department of Transportation to lay the smack down with a $70 million fine and millions more in other penalties, including an agreement to buy back 200,000 Ram pick-ups and offer $1,000 extra on certain trade-ins.

The full government action against Fiat Chrysler stems from a couple of big issues that they’ve yet to resolve, including gas tanks behind the rear axle of Jeeps that sometimes results in fires, and steering issues with Ram trucks that have undergone three unsuccessful recall repairs.

Fiat Chrysler and the National Highway Traffic Safety Administration settled after putting more and more pressure on the company.

For Jeep owners, if you’ve got the Liberty or Commander and you haven’t gotten it fixed, you can get $1,000 on top of your vehicle for a trade in (and if you own a Liberty you should take it) or a $100 gift card to get your Jeep fixed. Hey, get a Cherokee, it’ll make FCA that much richer.

If you’ve got one of the impacted Rams they’ll give you the full value of your vehicle.

There are various estimates of how many vehicles Ram could have to buy back, with some saying 500,000, but that would include all of the Rams sold and this only applies to un-repaired vehicles. Chrysler says there’s fewer.

KBB says it’s about 180,000 and estimates that the cost to Ram would be near $900,000.

Either way, not a great look for Chrysler, who also has to accept oversight from a third party approved by NHTSA.

http://truckyeah.jalopnik.com/fiat-chrysler-has-to-buy-back-180-000-ram-trucks-in-sti-1720481168