The National Highway Traffic Safety Administration plans to punish Fiat Chrysler Automobiles over its inability to fix recalled vehicles and communicate with the U.S. government and vehicle owners about the problems.
Mark Rosekind, the agency's chief, said on Thursday that punishment could come in the form of fines or penalties such as having to buy back vehicles from customers, according to The Wall Street Journal. Another possible outcome would be the automaker signing a consent order in which it admits to its mishandling of the recalls and accepts the penalties.
Rosekind plans, if Chrysler is proven to have violated federal laws for conducting recalls, to penalize the company as soon as the end of July and "absolutely" before Sept. 7.
The situation focuses on 23 recalls involving 11 million vehicles, which includes Chrysler recalling Jeep SUVs to fix faulty air bags, which didn't work due to the NHTSA still receiving reports of air bags inadvertently deploying in vehicles that dealers repaired, USA Today reported. Another case involves the Auburn Hills, Mich.-based automaker fixing faulty headliner wirings in some Jeep and Dodge vehicles that could start a fire, only for the NHTSA to continue to receive reports about the issue.
NHTSA officials also said that the agency received inconsistent, insufficient and inaccurate information form Chrysler about recalls and defects in cars.
"Fiat Chrysler's failure to provide timely, accurate and complete information to NHTSA on its recalls impedes our ability to do our job, which is to help ensure the safety of this nation's roadways," said Jennifer Timian, acting director of NHTSA's Office of Defects Investigation and chief of its Recall Management Division.
Rosekind said that there is a possibility of the U.S. Justice Department getting involved to investigate the case, USA Today reported.
While Scott Kunselman, senior vice president of vehicle safety and regulatory compliance for Chrysler's North American operations, said that the company could have done a better job at handling the recalls, he acknowledged that it is working to comply with the NHTSA with the addition of recall officials and safety regulators, as well as the introduction of a system designed to improve communications and help dealers fix cars.
Fiat Chrysler must submit a written response to the NHTSA's allegations within the next 10 days.
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