Fiat Chrysler Automobile dealers won’t be able to sell cars without recall repair work or they risk losing their incentive money under a new agreement with the federal government, Automotive News is reporting.
The agreement was part of the sweeping package penalties imposed by the National Highway Traffic Safety Administration, including up to $105 million in fines. According to the consent agreement by the federal bureau and FCA, the company already asks dealers to complete recall work, but the new mandate would reinforce that existing policy.
In the United States, it’s illegal for a dealer to sell a new car without recall repair work, but no such law exists for used cars. A recent proposal in Congress to force used car dealers to complete open recall repair work was met with opposition.
A U.S. Senate committee for transportation passed along a bill Thursday that included provisions to help domestic automakers develop and build cleaner vehicles, the Detroit News is reporting.
The proposal, dubbed the Vehicle Innovation Act, was included in a larger clean energy bill taken up by the committee. The Vehicle Innovation Act would set aside $313.6 million next year for research and development of hybrid technology, battery development and alternative fuels such as natural gas. Funding would increase by 4 percent every year up to 2020.
Nearly all major U.S. automotive lobbies representing manufacturers supported the proposal. (Read More…)
General Motors disclosed in its quarterly Securities and Exchange Commission filing Thursday that the Federal Trade Commission is investigating the automaker for selling used cars under recall, the Detroit News is reporting.
According to the automaker, the FTC notified GM that it was investigating “certified pre-owned vehicle advertising where dealers had certified vehicles allegedly needing recall repairs.”
The filing acknowledges the investigation is connected with the 2014 recall of 2.59 million cars with faulty ignition switches that could turn the car off while driving, disabling its airbags. So far, 124 deaths have been linked to the defect.
Two proposals for reforms to how the U.S. handles safety recalls and penalizes automakers are winding through a Senate committee.
A proposal backed by three Senate Democrats would make automakers include a recall warning light in the dashboard of new cars to notify owners of a safety recall and lift the cap on delayed recall fines and more. A less-aggressive proposal put forward by Republicans would require dealers to notify owners if their cars have been recalled, something most automakers already do but aren’t required by law.
The National Highway Traffic Safety Administration estimates that 25 percent of recalls are never completed.
A transportation bill sent to Congress Monday would grant the NHTSA the authority to stop automakers from selling vehicles with dangerous safety problems.
The next vehicle the TTAC Zaibatsu or the B&B rent could be safer if Congress heeds the call of the National Highway Traffic Safety Administration.
Though the National Highway Traffic Safety Administration says funding is needed to boost staffing, some in Congress aren’t so sure on the proposal.
Takata and those associated with its airbag recall crisis are heading back into the fire this week, one that could grow into a firestorm soon enough.
Alongside 11 former U.S. Department of Transportation secretaries, current secretary Anthony Foxx urged both houses of Congress to find a long-term solution to the funding of the U.S. Highway Trust Fund beyond what is under consideration at present.