Yesterday, July 1, 2015, federal regulators conducted a public hearing upon a case of nearly two dozen recalls by Fiat Chrysler Automobiles over the past years. The hearing will determine whether the automaker should be imposed a fine. If yes, the company will have to pay hundreds of millions of dollars.
According to the data provided by the National Highway Traffic Safety Administration, FCA failed to repair manufacturing defects in the majority of eleven million vehicles that were announced to be recalled. They weren’t either put in repair in due time or fixed appropriately. Upon the whole, there were 23 safety defect recalls starting with models produced back in 1993 including the Jeep Grand Cherokee, Dodge Ram trucks, Jeep Liberty, Chrysler 200, and Chrysler 300.
If it’s proved the automotive manufacturer violated the federal law by not fulfilling its responsibilities to the public, the NHTSA will make FCA pay for its actions literally - the NHTSA can oblige the company to reimburse owners of broken vehicles the cost of each vehicle or amerce it up to $35 million for each kind of negligence. The latter is a very serious punishment because if FCA were obliged to pay the maximum fine for each recall, the overall sum would amount to about $800 million while in 2014 the automaker gained a profit of $717 million.
However, FCA asserts the company fulfils all the administration’s demands. Meanwhile, federal regulators continue to be informed about acute shortage of parts necessary for repairing cars that were recalled in 2013. These vehicles may have rear wheels able to lock up or broken tie rod ends and air bag inflators.