Fiat Chrysler Automobiles said that its USA auto sales rose 8.2 per cent in June on strength in its Jeep and Chrysler brands, while robust SUV and truck sales helped Nissan Motor deliver a 13.3 per cent increase in monthly sales.
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The National Highway Traffic Safety Administration’s Mark Rosekind criticized FCA’s recall of 11 million cars and handling of fatal accidents.
The hearing also posed a test for NHTSA, which is taking a more aggressive stance on automakers under new administrator Rosekind, who took office in January.
Read the original article on Reuters. “What you’ve heard here is that there’s a pattern that’s been going on for some time”.
Edmunds.com, in a report released late Tuesday, said leasing also continued to drive the market last month, accounting for 28 percent of auto sales and a bigger role in deliveries of some trucks.
Responding to the testimony of the regulators and victims of safety defects, Fiat Chrysler safety chief Scott Kunselman didn’t dispute the agency’s allegations. Automakers must tell customers within 60 days after notifying the government about a recall.
The hearing comes amid a greater spotlight on the auto industry’s recall processes, following a firestorm of attention on Toyota’s unintended acceleration controversy and General Motors’ ignition-switch defect in recent years. If each recall were subject to the maximum fine, it could potentially lead to a total fine of more than $800 million. Several were scheduled to testify about the recall of 1.56 million older Jeeps for rear-mounted gas tanks that are vulnerable in rear crashes.
“We have serious concerns with Fiat Chrysler notifications to owners and to NHTSA about its recalls”.
How Fiat Chrysler Automobiles N.V. attracted investors to get BUY rating after this bullish run?
In a series of recalls, NHTSA said Fiat Chrysler failed to remedy safety defects in a reasonable time. As of April 30, NHTSA said Fiat Chrysler had made repairs to just 320,000 of the vehicles involved. Federal regulators have noted that only 21% of recalled Jeeps had been repaired as of April 30.
At the hearing, Fiat Chrysler did not defend the company’s track record. He further commented “Establishing Jeep production in India will give us the opportunity to offer even more people the chance to experience the freedom and adventure that can come from behind the wheel of a Jeep vehicle”. The paper added that 7,700 more of these vehicles need to be inspected, with 5,100 of those sold in the U.S. Specifically he said the company has restructured to address safety compliance and recall issues. Company records confirmed “that the parts needed to complete the recall repairs were often backordered or restricted to allow a dealer to fix one vehicle in a week or two vehicles per month”, Yon said.
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