Fiat Chrysler Expected To Face NHTSA Penalties
July 22, 2015 | Category: Automobile Accidents | ShareOn July 2, 2015 the NHTSA (National Highway Traffic Safety Administration) held a hearing, and the result is that Fiat Chrysler Automobiles (FCA US) is expected to face monetary penalties for what Mark Rosekind, Administrator, said was a failure to adequately fix safety defects associated with 20 different recalls. Mr. Rosekind said, "It is not enough to identify defects. Manufacturers have to fix them."
FCA was accused of violating U.S. laws which govern recalls because of how it administered recalls which affected more than 11 million vehicles since 2013. The Wall Street Journal reported that the NHTSA increased the number of recalls it was reviewing at the hearing from 20 to 22. Consumer complaints alleged that replacement parts have been unavailable; there has been a lack of notification, difficulty making service appointments at dealerships, and misinformation received from dealers. According to Auto News, FCA could face more than $700 million in fines and be required to buy back, or replace, vehicles if it is found it fell short of its legal obligations. The recalls cover model years dating back to 1993 and cover Jeep, Dodge, Chrysler and Mitsubishi vehicles.
What happens if an automaker fails to fix the defect in a timely manner?
According to NHTSA, its defect investigations have resulted in 1,299 recalls involving more than 95 million vehicles and vehicle equipment over the past ten years. The agency has obtained record fines of $124.5 million in the last five years from automakers who have failed to promptly report defects to NHTSA.
What are your remedies against a manufacturer if you are injured in an accident because of a defective vehicle?
Defective-vehicle and vehicle-part injuries fall under the practice area of product liability. A negligence claim under Florida Statutes may be brought against a vehicle manufacturer if:
- The victim was injured or suffered a loss;
- The product was defective;
- The defect was a proximate and actual cause of the injury, and
- The product was being used as it was intended.
What is a safety-related defect?
The NHTSA defines a safety defect as a problem that exists in a motor vehicle or item of motor vehicle equipment that: (1) poses a risk to motor vehicle safety, and (2) may exist in a group of vehicles of the same design or manufacture, or items of equipment of the same type and manufacture.
How should you be notified if a recall is ordered or initiated?
The NHTSA has specific requirements covering notification of recalls. They are that automobile manufacturers are required, within a reasonable timeframe, after the determination of a safety defect or noncompliance, to notify, by first-class mail, all registered owners and purchasers of the affected vehicles of the existence of the problem and give an evaluation of its risk to motor vehicle safety. Names of vehicle owners are obtained from State motor vehicle offices. The letter must also instruct consumers on how to get the problem corrected; remind them that corrections are to be made at no charge; inform them when the remedy will be available; how long the remedy will take to perform, and whom to contact if there is a problem in obtaining the free recall work. If you do not receive a letter of notification from the vehicle manufacturer, but think that your vehicle might be involved in a recall campaign, call the Vehicle Safety Hotline at 888-327-4236 or 800-424-9393, visit the NHTSA Safercar.gov website, or contact the manufacturer or your dealer.
How are problems with recalled vehicles or equipment required to be remedied?
The law gives manufacturers three options for correcting a defect once a safety-defect determination is made. They are - repair, replacement, or refund. When the recall is a vehicle recall, the manufacturer may choose to repair the vehicle at no charge; replace the vehicle with an identical or similar vehicle, or refund the purchase price in full, minus a reasonable allowance for depreciation. Should the recall be for vehicle equipment, including tires and child safety seats, the manufacturer may either repair or replace the affected equipment at no charge to the consumer.
"If you believe you have been injured as the result of a recalled, defective product, consider speaking with one of our experienced attorneys at Spivey Law Firm, Personal Injury Attorneys, P.A. Contact us for a free consultation," said Fort Myers Unsafe Vehicle Attorney, Randall Spivey.
Fort Myers Unsafe Vehicle Attorney, Randall L. Spivey is a Board Certified Trial Attorney – the highest recognition for competence bestowed by the Florida Bar and a distinction earned by just one (1%) percent of Florida attorneys. He has handled over 2,000 personal injury and wrongful death cases throughout Florida. For a free and confidential consultation to discuss your legal rights, contact the Spivey Law Firm, Personal Injury Attorneys, P.A., in Lee County at 239.337.7483 or toll free at 1.888.477.4839,or by email to Randall@SpiveyLaw.com. Visit SpiveyLaw.com for more information. You can contact Spivey Law Firm, Personal Injury Attorneys, P.A.in Charlotte County at 941.764.7748 and in Collier County 239.793.7748.