Fiat Chrysler Faces Punishment for Recall Issues
The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) determined that Fiat Chrysler failed to provide a remedy and notices for 23 recalls related to malfunctions of their automobiles. It is reported that the Chief of the NHTSA will punish Fiat Chrysler for the failed recalls involving approximately 11 million vehicles. According to the transcript of the hearing, the 23 recalls involved "fuel systems that can catch fire in rear crashes, defective ignition switches that can disable a vehicle’s airbags and defective air bags that can unexpectedly go off." Fiat Chrysler has 10 days to submit a written response to the allegations brought forth and may face harsh fines and penalties.
In 2014, the US Department of Justice (DOJ) announced a $1.2 billion settlement agreement with Toyota for misleading customers and US regulators. In November 2012 Toyota settled a class action lawsuit for $35.5 million brought by its shareholders failing to disclose vehicle quality issues. In 2010, Toyota agreed to pay $32.4 million in fines following investigations by the NHTSA.
This article originally appeared on Jurist.