Chrysler to Pay $105 Million Fine, Buy Back Defective VehiclesJul 28, 2015
Following a number of recalls and criticism over how they were handled, Fiat Chrysler Automobiles has reached an agreement with the federal government and agreed to pay a record $105 million fine. The agreement also includes independent monitoring for future recalls. Additionally, if owners choose to sell their recalled cars with faulty suspension parts back to Chrysler, the auto maker may end up buying back over half a million vehicles, Fortune reports.
A hearing held earlier this month pointed out issues with how Chrysler handled 23 recalls involving over 11 million vehicles. Fortune reports that the auto maker entered into an agreement with the Department of Transportation recognizing that it failed to repair vehicles with safety defects as required by the Motor Vehicle Safety Act. Since the hearing, the company has acknowledged three areas in which it violated the Safety Act: effective and timely recall remedies, notification to vehicle owners and dealers, and notifications to the National Highway Traffic Safety Administration (NHTSA).
The agreement requires Chrysler to pay a $70 million cash penalty. Honda faced an equivalent penalty in January, according to Fortune. The auto maker also agreed to three years of oversight, including an NHTSA-approved independent monitor to evaluate the company's recall performance. Additionally, Chrysler must spent $20 million on meeting performance requirements laid out by the federal government. If the independent monitor finds any additional Safety Act violations, the company could spent another $15 million.
Chrysler issued a recall affecting approximately 1.4 million vehicles last week. Wired reported that it may be possible to remotely hack some vehicles and control their systems due to a security flaw with certain touchscreen systems.