Report: NHTSA to Fine Fiat Chrysler $105M
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.
The automaker faced a congressional hearing this month for its failure to quickly recall Jeeps that could catch fire in a rear-end collision. In June, Chrysler refused to comply with a request by NHTSA to recall those Jeeps.
A bill is winding its way through Congress to change how NHTSA penalizes automakers and conducts recalls.
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An interesting note re: all those Ford bashers who argue that Ford stands for "found on road dead" -- GM is in hot water, FCA/Chrysler is in hot water. And while Ford has had issues in the past, the Pinto of decades ago may have been the last legitimate one. After researching issues surrounding LEO-owned Panthers and supposed fire hazards, it seems that part of the issue was that the gas tanks could get crushed when hit from behind when stationary, by a vehicle going seventy miles per hour. And it was only because the agency that bought them wanted to make an issue of it that it got publicity. I doubt there was a car on the road in the nineties that could have withstood that kind of collision. And even there, Ford engineered a pretty impressive rearward facing crashbar to better protect the tanks. I have no financial connection with Ford, but they have been some of the best vehicles I have ever owned, and I have a fairly impressive collection of just about everything except vehicles of the ultrarich in my history, so I have some basis for comparison. And I personally have experienced engineering and safety stupidities with Jeeps, a truck from GMC, an underhood fire with an Isuzu Trooper, repeated door handle and hood latch failures on a Corolla, and other such nonsense. But no such problems with two Fords, with a combined mileage of over a half million miles. Yet I am forced, as a taxpayer, to subsidize the poor engineering and to help pay the fines, for these other manufacturers. Oh, and lest I forget, stupid engineering stories of German engineering, as well. I'll spare you the long version of them. Just that they too were discovered the hard way, by personal experiences. To each his own. As for me, make mine Ford. And BTW a tip for the editorial staff at TTAC - Ford is engineering a very high tech bicycle in conjunction with MIT as well, which is perhaps a greater contribution to ecology than a lot of subsidized electric cars with high fossil fuel costs to generate their electricity. Just saw it on the net today.
This does not bode well for FCA. It seems Chrysler just can't stay out of its own way. That's unfortunate, but I have a bad feeling the brand may disappear altogether except for Jeep, and besides their continuing popularity, they are plagued with quality issues as well. A friend has had issues with his new Grand Cherokee, too. Transmission computer re-flashes and a few other niggling things. That's too bad because it's a super vehicle and he loves it.
I'm interested in the "above market value" trade-in deal. I've got an old Grand Cherokee that has been a wonderful car - but I'm ready for a Wrangler. If FCA makes me a sweet trade-in deal - I'd be happy to pick up a new Rubicon.
AP is also reporting that FCA must offer buyback for 500,000 Ram trucks as well. Do you guys know anything about that as well?