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Fiat Chrysler hit with $105M fine by NHTSA over failed recalls

By Doug G. Ware
Fiat Chrysler is expected to agree to a $105 million penalty by the National Highway Traffic Safety Administration on Monday over the failure to complete 23 safety recalls -- including that of a potentially deadly gas tank fault in older Jeeps. Photo: UPI/John Angelillo
Fiat Chrysler is expected to agree to a $105 million penalty by the National Highway Traffic Safety Administration on Monday over the failure to complete 23 safety recalls -- including that of a potentially deadly gas tank fault in older Jeeps. Photo: UPI/John Angelillo | License Photo

DETROIT, July 26 (UPI) -- Fiat Chrysler was officially hit with a record $105 million penalty by the U.S. Department of Transportation on Sunday over nearly two dozen safety recalls it failed to complete, officials said.

The Dept. of Transportation and National Highway Traffic Safety Administration announced the penalty Sunday, which is part of an agreement that will allow some customers to sell their affected vehicles back to the automaker.

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"Today's action holds Fiat Chrysler accountable for its past failures, pushes them to get unsafe vehicles repaired or off the roads and takes concrete steps to keep Americans safer going forward," Transportation Secretary Anthony Foxx said in an official release. "This civil penalty puts manufacturers on notice that the Department will act when they do not take their obligations to repair safety defects seriously."

The fine involves 23 recalls that include more than 11 million vehicles manufactured by the American-Italian automaker -- including a potentially deadly gas tank fault in older Jeeps.

In announcing the deal, Transportation officials were particularly critical of the automaker.

"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."

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Also as part of the agreement, an independent monitor will oversee the company's handling of safety recalls going forward for a period of three years, officials said.

It wasn't specified exactly how the $105 million would be divided among the 23 recalls, but the deal will also allow Fiat Chrysler to recoup some of the money if certain conditions are met.

Fiat Chrysler's fine surpasses the previous high given out by the NHTSA for a recall -- $70 million -- levied against Honda last year for defective airbags.

"The company must pay a $70 million cash penalty – equal to the record $70 million civil penalty the agency imposed on Honda in January," the DOT's statement said. "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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