DETROIT, Michigan (AP)- The chief US auto safety regulator says Fiat Chrysler will face sanctions for violating safety laws in multiple recalls.
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Rosekind said a number of options for agency action are “on the table”, including fines against the company and requiring it to buy back vehicles subject to recall. Another possible outcome would be the automaker signing a consent order in which it admits to its mishandling of the recalls and accepts the penalties.
The automaker, which controls the Auburn Hills, Mich.-based auto company previously called Chrysler Group, is under scrutiny for its handling of 23 recalls involving about 11 million vehicles.
The tanks are vulnerable to being punctured in a rear crash.
NHTSA officials also said that the agency received inconsistent, insufficient and inaccurate information form Chrysler about recalls and defects in cars.
Mark Rosekind, the agency’s chief, on Thursday said he expected to penalize Fiat Chrysler by as soon as the end of July and “absolutely” before September 7.
While Scott Kunselman, senior vice president of vehicle safety and regulatory compliance for Chrysler’s North American operations, said that the company could have done a better job at handling the recalls, he acknowledged that it is working to comply with the NHTSA with the addition of recall officials and safety regulators, as well as the introduction of a system designed to improve communications and help dealers fix cars.
“Fiat Chrysler takes a long time to produce the parts needed to get vehicles fixed”. Later this month, Fiat Chrysler will appear before a judge to argue for a new trial in a Georgia case where a jury awarded $150 million of legal damages over the death of a 4-year-old boy in a Jeep fire.
Fiat Chrysler said its sales in Canada notched a 1-per-cent rise to 27,217 vehicles as Dodge and Chrysler minivan sales rose 14 per cent to 6,186. If the nuts come loose, the shaft can fall off the truck and the wheels can lock up.
“Although Chrysler reported that it had completed sending notices to owners in November of 2013 telling them parts were available and repairs could be completed, NHTSA continued to receive owner complaints that parts could not be found”, Yon said. “Problems with the information that Fiat Chrysler reports – or in many cases, fails to report – to NHTSA are also widespread”.
Owners in some recalls have waited up to 18 months for replacement parts says NHTSA. Company records confirmed that parts were often backordered or restricted so dealers could fix only one vehicle per week, Yon said.
Much of the testimony in the hearing focused on a recall of 1.56 million older-model Jeeps with gas tanks mounted behind the rear axles. At least 75 people have died in fires involving the Jeeps, according to NHTSA.
Fiat Chrysler’s Mr. Marchionne met privately with senior regulators in June 2013, leading to a deal for the limited recall with no admission the vehicles were defective.
Chrysler maintains the Jeeps are as safe as comparable SUVs built during the same years. Some of the Jeeps are 22 years old, and it’s hard to find owners through state registration databases because addresses may not exist, the company said.
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Fiat Chrysler is installing trailer hitches on the backs of recalled Jeeps to provide better protection in lower-speed collisions.
