Fiat Chrysler Automobiles NV is the third largest US automaker and its chief executive officer Sergio Marchionne recently said the company was discussing with the US auto safety regulator about the automaker’s recall glitches.
Marchionne said the ongoing talks with the National Highway Traffic Safety Administration included the possibility to escape potential fines over the way they handled a series of recalls that encompassed eleven million autos. “There’s nothing signed,” he said, though disclosing the carmaker will have to address the current way of discussing matter with the regulators in the future. “We have adapted not in the best possible way to the new regime,” Marchionne added about the latest, more proactive way taken by the NHTSA since it has a new administrator – Mark Rosekind. “We have to continue to work with the agency to put us on the right path,” the CEO added. The US auto safety regulator called on June 2 a rare public hearing on the automaker’s way of handling recalls.
The National Highway Traffic Safety Administration said in a statement recently they could see as a potential outcome a consent order where FCA US would resolve the problems surrounding its recall tally – thus avoiding potential fines. The agency added they would have announcements on upcoming steps soon after the public comment period following the June 2 hearing ends on July 17. If the NHTSA is dissatisfied with the way Fiat Chrysler handles the recalls it could impose fines of up to $700 million.