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Chrysler Hit With Record Penalty; Agrees To Buy Back Vehicles And Federal Oversight

Krohn & Moss, Ltd. Consumer Law Center ® has become aware of violations of the Motor Vehicle Safety Act’s requirements to repair vehicles with safety defects by Fiat Chrysler.

U.S. Transportation Secretary Anthony Foxx announced that Fiat Chrysler Automobiles has acknowledged violations of the Motor Vehicle Safety Act’s requirements to repair vehicles with safety defects and will submit to rigorous federal oversight, buy back some defective vehicles from owners, and agreed to a $105 million civil penalty, the largest ever imposed by the Department’s National Highway Traffic Safety Administration.

The enforcement action comes after a July 2 public hearing at which NHTSA officials outlined problems with Fiat Chrysler’s execution of 23 vehicle safety recalls covering more than 11 million defective vehicles. Fiat Chrysler has since admitted to violating the Safety Act in three areas: effective and timely recall remedies, notification to vehicle owners and dealers and notifications to NHTSA.

In a consent order issued by NHTSA, Fiat Chrysler commits to take action to get defective vehicles off the roads or repaired. Owners of more than half a million vehicles with defective suspension parts that could cause the vehicle to lose control will have the opportunity to sell their vehicle back to Fiat Chrysler. Owners of more than a million Jeeps that are prone to deadly fires either will have the chance to trade their vehicle in for above its market value, or will receive a financial incentive to get their vehicle remedied.

The company must pay a $70 million cash penalty – equal to the record $70 million civil penalty the agency imposed on Honda in January. In addition, Fiat Chrysler must spend at least $20 million on meeting performance requirements included in the Consent Order. Another $15 million could come due if the independent monitor discovers additional violations of the Safety Act or the Consent Order.

If you have a question regarding your Fiat Chrysler Automobile, you should call the experienced lemon law attorneys at Krohn & Moss, Ltd. Consumer Law Center ®. Our lemon law attorneys will take time to talk to you about your rights and will let you know if they can help. Visit www.YOURLEMONLAWRIGHTS.com or call 1-800-US-LEMON to submit your information to see if we can help.