Fiat Chrysler agrees to buy back 578,000 pickups in settlement

(July 27, 2015) Fiat Chrysler Automobiles faces at least three years of oversight by an independent monitor into its auto safety efforts as part of a sweeping, record-setting $105 million settlement in the government’s investigation of nearly two dozen recalls covering 11 million vehicles.

The Italian-American automaker admitted it broke the law in failing to quickly repair vehicles in three separate recall campaigns and agreed to buy back as many as 578,000 older Ram pickups for steering issues after some owners said they have waited 18 months or longer for repairs because of parts shortages.

The company must spend $20 million to meet performance requirements laid out by the consent agreement. The automaker may have to pay another $15 million if the monitor discovers additional violations of U.S. auto safety laws, or if Fiat Chrysler violates terms set by the consent order, the department said.

Fiat Chrysler, as part of the consent agreement, admitted that it “failed to timely provide an effective remedy” in three recall campaigns, and that it failed to comply with “various reporting requirements” of U.S. laws governing recalls in a timely manner.

Sources: Press reports, Detroit News, Automotive News