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.
Fresh from the recent Fiat Chrysler Automobiles infotainment-hacking flap, the National Highway Traffic Safety Administration announced last week that it would look further into supplier Harman Kardon for possible vulnerabilities in other cars, the Associated Press reports (via Autoblog).
Harman Kardon produces radios for automakers such as BMW, Subaru, Mercedes-Benz and Volvo, in addition to FCA.
In an order detailing the largest civil penalty for an automaker so far, the National Highway Traffic Safety Administration said Monday that Fiat Chrysler Automobiles could have to buy back 500,000 defective trucks and accept trade-in above market value for 1 million defective Jeeps .
The automaker’s record $105 million fine includes a $70 million penalty, $20 million set aside for meeting safety standards dictated by the federal bureau and an additional $15 million in penalties if an independent monitor discovers further safety violations.
The National Highway Traffic Safety Administration will fine Fiat Chrysler Automobiles $105 million for botching the recall of more than 11 million cars, including 1.6 million Jeeps with a fuel tank issue, the Wall Street Journal is reporting.
The automaker faced fines of up to $700 million.
As part of the settlement, FCA will agree to an independent monitor to audit its recalls. On Friday, FCA announced it was recalling 1.4 million cars and trucks for software that could be hacked and controlled remotely.
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.
Last week, we learned General Motors was recalling the majority of their Hummer H3 and H3T models due to a fire risk from a melting blower motor resistor and harness. We also learned GM didn’t issue the recall until they were threatened by the National Highway Traffic Safety Administration.
A few days ago, Jalopnik’s Michael Ballaban pointed out the Chevrolet Colorado and GMC Canyon were also at risk due to similar components. These trucks may not be the last of the affected models as the Pontiac Solstice and Saturn Sky also shared many HVAC components with the Hummer H3.
Searching through the NHTSA complaints database and user forums yielded many examples of melted and burnt blower motor resistors and harnesses for the GM roadster twins.
U.S. rental cars will need to comply with open recalls before being driven off the lots, a U.S. Senate panel decided Wednesday, according to Bloomberg.
The measure was an about-face from an earlier proposal backed by automakers, consumer groups and some rental car companies, which would have allowed rental cars with known defects to continue to be driven, as long as those defects were disclosed to consumers. NHTSA asked lawmakers to consider the proposal on pulling defective cars off the road in February.
The bill’s opponents said the revised amendment could harm consumers by filling dealerships with rental cars waiting to be repaired.
Jalopnik has an interesting story today about how General Motors negotiated its way into recalling 200,000 Hummers only after the National Highway Traffic Safety Administration threatened to launch a formal investigation.
Last week, Hummer recalled nearly 200,000 SUVs due to an increased fire risk because of a faulty HVAC harness that could melt and catch fire.
GM knew about the problem in 2008, Jalopnik writes, and did nothing until issuing a recall this July.
The National Highway Traffic Safety Administration is blocking former chief David Strickland from testifying in a California civil lawsuit for Toyota on issues regarding its push-button start systems in some of its cars.
According to the Detroit News, NHTSA officials told lawyers in a letter that Strickland would be barred from testifying in the case as an expert witness.
“The agency has been roundly criticized for its relationship with Toyota in terms of recent enforcement actions, particularly regarding unintended acceleration,” NHTSA’s lawyer wrote in the letter. “Given this history, Mr. Strickland’s testimony as a former NHTSA administrator describing Toyota’s actions or conduct in this matter with approval, will likely diminish the agency’s ability to pursue a vigorous enforcement review of Toyota moving forward.”
Yesterday, the National Highway Traffic Safety Administration took the unusual step of hauling a single automaker to the Capitol to scold Fiat Chrysler for delays in recalls and repairs. The hearing is ahead of anticipated fines NHTSA may deal later this month, possibly as high as $700 million.
Attention was focused on Jeep Liberties and Grand Cherokees with rear-mounted gas tanks that could leak fuel if struck in a high-speed rear collision and potentially catch fire. Also of importance is the rate at which Jeep notified its owners of the recall.
FCA’s Senior Vice President for Vehicle Safety and Regulatory Compliance Scott Kunselman said at the hearing that FCA “could have done better in carrying out the campaigns.”