In an order detailing the largest civil penalty for an automaker so far, the National Highway Traffic Safety Administration said Monday that Fiat Chrysler Automobiles could have to buy back 500,000 defective trucks and accept trade-in above market value for 1 million defective Jeeps .
The automaker's record $105 million fine includes a $70 million penalty, $20 million set aside for meeting safety standards dictated by the federal bureau and an additional $15 million in penalties if an independent monitor discovers further safety violations.
The record ruling comes after the agency said FCA botched recalls of more than 11 million vehicles for wide ranging issues, including Jeep models with rear gas tanks that could catch fire in rear collisions. The issue has been linked to more than 50 deaths.
NHTSA Administrator Mark Rosekind scolded the automaker in a statement Monday announcing the fine.
"Fiat Chrysler's pattern of poor performance put millions of its customers, and the driving public, at risk," he said. "This action will provide relief to owners of defective vehicles, will help improve recall performance throughout the auto industry, and gives Fiat Chrysler the opportunity to embrace a proactive safety culture."
According to a statement by the automaker, Jeep owners who haven't yet complied with their recall could get a $100 gift card to bring their vehicle into a dealer. Owners of defective Jeep models would also be eligible to trade in their vehicle for $1,000 above fair market value.
In addition to the Jeep fix, FCA will attempt to purchase or fix for free Ram trucks or Chrysler SUVs with a suspension defect that could cause the car to lose control. FCA could resell those fixed cars.
The automaker will have to submit to independent monitoring of its recalls for the next three years, with NHTSA being able to extend that agreement further for an additional year.
Last week, FCA announced it would be recalling 1.4 million cars for a security vulnerability that could allow hackers to remotely take control of a vehicle.
Read the ruling here.
The vehicles that may be eligible for repurchase are:
• 2009-2012 Ram 1500s
• 2008-2012 Ram 1500 Mega Cab 4×4, Ram 2500 4×4, 3500 4×4, 4500 4×4, 4500 4×4
• 2009 Chrysler Aspen and Dodge Durango
• 2009-2011 Dodge Dakota
The vehicles that may be eligible for a $100 gift card for dealer inspection or $1,000 over market value for trade-in are:
• 1993-2004 Jeep Grand Cherokee
• 2002-2007 Jeep Liberty
The post Fiat Chrysler May Have to Take Back 1.5M Defective Jeeps, Rams appeared first on The Truth About Cars.
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