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Fiat Chrysler to Face Record Setting Fine After Recall Delays and Errors

By Williams & Brown LLP on July 28, 2015

Millions of Cars RecalledAutomaker Fiat Chrysler is expected to accept the terms of a $105 million fine in relation to long-standing lapses in its recall announcements and repairs, according to a recent article in the Wall Street Journal.

The fine, now the largest of its kind, focuses on problems with over two dozen recalls the company has issued or been required to issue over the last several years.  More than 11 million vehicles are being recalled to address mechanical problems, including a potentially fatal fire hazard in older Jeep models with rear-mounted fuel tanks. Several deaths have been attributed to the faulty fuel tanks, catching the the attention of experienced Texas car accident lawyers seeking to better protect their injured clients.

The $105 million fine is not related to a specific recall, according to the Wall Street Journal.  Instead, the fine addresses a number of legal violations, such as misleading federal regulators, inadequate or inappropriately delayed repairs, and the automaker’s failure to send timely alerts to car owners that a recall affected their vehicles.  In addition to the fine, the automaker will be expected to work with an independent third party who will track the company’s attempts to correct the situation.  The automaker will also be required to repurchase certain recalled vehicles under the terms of the proposed agreement.

The consent agreement, which Fiat Chrysler is expected to sign in the coming weeks, includes provisions that allow the automaker to recoup parts of the $105 million fine if it meets certain conditions.

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Posted in: Automobile Safety

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