Recall Mistakes Force Ram into Biggest Ever Vehicle Buyback

NHTSA slaps Fiat Chrysler with unprecedented $105 million fine for violating recall rues and automaker agrees to buy back up to 500,000 vehicles

National Highway Traffic Safety Administration
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Fiat Chrysler Automobiles acknowledged violations of the Motor Vehicle Safety Act’s requirements to repair vehicles with safety defects and will submit to rigorous federal oversight, buy back as many as half a million defective vehicles from owners, and agreed to a $105 million civil penalty, the largest ever imposed by the U.S. Department of Transportation’s National Highway Traffic Safety Administration.

At a July 2 public hearing, NHTSA officials outlined problems with the automaker’s execution of 23 vehicle safety recalls covering more than 11 million defective vehicles. Fiat Chrysler has since admitted to violating the Safety Act in three areas: effective and timely recall remedies, notification to vehicle owners and dealers and notifications to NHTSA.

In a consent order issued by NHTSA, Fiat Chrysler commits to take action to get defective vehicles off the roads or repaired. Owners of more than half a million vehicles – including more than a million Ram 1500, 2500 and 3500 trucks – with defective suspension parts that could cause the vehicle to lose control will have the opportunity to sell their vehicle back to Fiat Chrysler.

Fiat Chrysler Clarifies Scope of Remedies in NHTSA Consent Order

Owners of more than a million Jeeps that are prone to deadly fires in rear-end collisions either will have the chance to trade their vehicle in for above its market value, or will receive a financial incentive (a $100 gift card, according to the Los Angeles Times) to get their vehicle remedied.

The signed consent order released Sunday requires FCA to notify vehicle owners eligible for buybacks and other financial incentives that these new options are available.

The automaker also agrees to unprecedented oversight for the next three years, which includes hiring an independent monitor approved by NHTSA to assess, track and report the company’s recall performance.

“Fiat Chrysler’s pattern of poor performance put millions of its customers, and the driving public, at risk,” NHTSA Administrator Mark Rosekind said. “This action will provide relief to owners of defective vehicles, will help improve recall performance throughout the auto industry, and gives Fiat Chrysler the opportunity to embrace a proactive safety culture.”

The company must pay a $70 million cash penalty – equal to the record $70 million civil penalty the agency imposed on Honda in January. In addition, Fiat Chrysler must spend at least $20 million on meeting performance requirements included in the Consent Order. Another $15 million could come due if the independent monitor discovers additional violations of the Safety Act or the Consent Order. 

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