National Highway Traffic Safety Administration Slaps $105M Fine on Fiat Chrysler Over Issues of Safety Lapses
On Sunday, National Highway Traffic Safety Administration said that Fiat Chrysler Automobiles NV has to pay $105 million penalty as the car maker repeatedly failed to appropriately execute the safety recalls of millions of vehicles.
The Italian-U.S. company agreed to pay the amount as a part of the deal also agreed to buy back almost half a million vehicles that have defective suspension parts which makes the vehicle go out of control.
There has been growing concern over safety practices followed by the car maker.
In addition to the penalty in money terms, the NHTA also assigned an independent monitor that will audit the recall processes initiated by the company for about four years.
As a part of the agreement, Fiat Chrysler will pay an upfront amount of $70 million and add an extra $20 million to enhance services provided by the industry like educating manufacturers about meeting proper legal safety obligations and making suppliers more prompt in sounding alert in case of suspected defects. The other $15 million will be payable in case the car maker violates the federal law or the consent order.
Mark Rosekind , NHTSA Administrator said, "Fiat Chrysler's pattern of poor performance put millions of its customers, and the driving public, at risk."