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Fiat Chrysler faces record fine

Posted on Tuesday, July 28th, 2015   

Fiat Chrysler was slapped with a record $105 million fine this past Sunday by federal regulators as punishment for not completing 23 recalls of over 11 million vehicles due to safety issues. The penalty tops the $70 million fine Honda incurred this January for faulty airbags, making it the largest fine ever levied by the National Highway Traffic Safety Administration on an automaker for violations of federal safety rules.

Secretary of Transportation Anthony Foxx said of the harsh punishment: “This civil penalty puts manufacturers on notice that the department will act when they do not take their obligation to repair safety defect seriously.”

Fiat Chrysler also released a consent agreement this past Sunday in which the company admitted guilt in violating these recall regulations and agreed to the punishment, saying, “We also accept the resulting consequences with renewed resolve to improve our handling of recalls and re-establish the trust our customers place in us.”

In a recent briefing in Detroit, the highway safety agency’s new administrator, Mark R. Rosekind, told reporters that, “We need a proactive safety culture in this country.” Rosekind has made a number of moves lately in an effort to crack down on automakers that avoid correcting defective vehicles.

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