Following Recalls, Chrysler to Pay $105 Million Fine

Under an agreement with the Department of Transportation, Fiat Chrysler has agreed to pay $105 million over how it handled recalls. The company may also buy back over half a million vehicles with faulty suspension parts, Fortune reports. Additionally, the company will be subject to independent monitoring for recalls in the future.

Chrysler must pay a $70 million cash penalty, according to Fortune. In January, Honda was required to pay the same record penalty. Under the agreement, the automaker also agreed to oversight for the next three years. This includes an independent monitor approved by the NHTSA to evaluate the company’s recall performance. Additionally, Chrysler must spent $20 million on meeting performance requirements laid out by the federal government.

Problems with how Chrysler handled 23 recalls involving 11 million vehicles were outlined in a hearing held earlier this month. Since then, the company has acknowledged three areas in which it violated the Motor Vehicle Safety Act: effective and timely recall remedies, notification to vehicle owners and dealers, and notifications to the National Highway Traffic Safety Administration (NHTSA). The auto maker recognized that it violated the Act by failing to repair vehicles with safety issues. The company could end up spending another $15 million if the independent monitor find any further Safety Act violations.

Last week, Chrysler issued another recall affecting approximately 1.4 million vehicles. Wired reported that it may be possible to remotely hack some vehicles and control their systems due to a security flaw with certain touchscreen systems.

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