Rosekind says 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.
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Rosekind said the agency could also determine whether to forward the case to the U.S. Justice Department for possible criminal action.
The day’s most riveting testimony came from Unilever employee Todd Anderson, whose 17-year-old son, Skyler, was burned to death in a Jeep collision in November 2013, months after Fiat Chrysler agreed to recall 1.5 million of the vehicles. “There will be action”, Rosekind told media representatives.
“Recall execution is where we have fallen short”, said Scott Kunselman, FCA’s senior vice president for vehicle safety and regulatory compliance in North America. The auto maker “could have done better in carrying out the campaigns you identified”.
“We are striving to reform our culture and these measure are consistent with that goal”, said Eric Mayne, a Fiat Chrysler spokesman, in an e-mailed statement. In addition, the company is working with suppliers to quicken design and production of fix parts.
The spotlight is especially intense on Fiat Chrysler. He now reports directly to CEO Sergio Marchionne. Depending on the outcome of regulators’ probe, Fiat Chrysler could be forced to pay hundreds of millions of dollars in fines.
Kunselman’s pledge of cooperation could suggest the automaker is open to a consent order, in which Fiat Chrysler and NHTSA would agree on steps to improve recall performance for vehicles including Jeep Grand Cherokee and Jeep Liberty sport utility vehicles.
But Rosekind, speaking to reporters after a public hearing Thursday on Fiat Chrysler’s handling of 23 recalls, wouldn’t say more until a comment period closes on July 17.
The recalls involved problems as serious as rear-mounted gas tanks that can leak and cause fires in a crash, air bags that can explode with too much force and spew shrapnel, and ignition switches that can abruptly shut off, causing engines to stall. Their customers have trouble getting recall repairs done.
Mr. Ditlow expressed concerns about dealers declining to install trailer hitches on rusty Jeeps.
During an unprecedented public hearing, NHTSA said that FCA has widespread problems with the way it conducts vehicle recalls, also saying that the company has misled safety regulators and violated laws.
In one case, Fiat Chrysler delayed distribution of parts to fix a nut that can come loose from Ram truck drive shafts, said Scott Yon, chief of vehicle integrity for NHTSA.
“Fiat Chrysler takes a long time to produce the parts needed to get vehicles fixed”. Company records confirmed that parts were often backordered or restricted so dealers could fix only one vehicle per week, Yon said.
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“Fiat Chrysler’s failure to provide timely, accurate and complete information to NHTSA on its recalls impedes our ability to do our job, which is to help ensure the safety of this nation’s roadways”, said Jennifer Timian, acting director of NHTSA’s Office of Defects Investigation and chief of its Recall Management Division. Other recalls being scrutinized include those involving Fiat Chrysler vehicles equipped with rupture-prone air bags manufactured by Takata Corp. of Japan.
