Biggest Penalty Ever, NHTSA Demands $105 Million from Fiat Chrysler

MANILA : A strong grip over the automobile industry has become a major necessity these days, as any malpractice can cost millions of lives. One such regulator who keeps a sharp eye over these manufacturers is the National Highway Traffic Safety Administration (NHTSA), America's vehicle safety regulator. Though, many groundbreaking discussions are a part of NHTSA success stories, this one will surely leave a mark on entire auto-industry.

This time Fiat Chrysler has come under the claws of NHTSA, for its excess delays in call-backs. A total of 23 separate recalls that dates back to 2009 were unanswered, including 11 million vehicles. The Federal Regulator has imposed a jaw-dropping penalty of $105 million on Fiat Chrysler which is its largest after the $70 million fine imposed on Honda this January. The $105 million fine was segregated into three portions that included $70 million of cash penalty, and $20 million to meet the performance requirement as per the issued order. An additional fine of $15 million further form a part of this fine if an independent monitor discovers anymore violations of safety law. NHTSA will look into Fiat Chrysler books as an auditor for a period of three years to keep an eye on its recall routine.

Apart the $105 million fine, Fiat Chrysler is further required to take back as many as 50,000 defective cars, carrying a faulty suspension capable enough to take your life. Also, one million owners can now trade their Jeep above market value that carry a fire-prone rear mounted gas tank.

This action by NHTSA will surely be a learning lesson for all the car manufacturers, warning them to fill all the pit holes present in their system. Such events will surely put immense pressure on the automakers as authorities now aim towards “a proactive safety culture in this country.”