FCA is treading in deep waters as the company has now got to buy back more than 5,00,000 Ram pickup trucks and pay a fine of almost $105 million in America by breaking all records to become the biggest fine ever in the automobile industry.
Fiat Chrysler Automobiles (FCA) has got into a massive tangle as the company has now got to buy back more than 5,00,000 Ram pickup trucks and other vehicles from its customers in what is called the biggest of such cases ever. The buyback has to be done because it’s a part of a costly deal with the safety regulators in order to settle certain legal problems in more than twenty other recalls. To add to the misery, FCA has been slapped with a fine of almost $105 million (Rs. 672.2 crores) and more than a million Jeeps will have to be traded or the owners must be paid by Chrysler to get vulnerable rear-mounted gas tanks repaired.
It seems that automotive regulators have taken a more aggressive approach to tackle companies who fail to conduct a proper recall or even fail to disclose such defects. The Ram pickup truck is the brand’s best-selling vehicle and has defective steering parts which can attribute to losing control while driving. This issue can either be repaired or owners can also make Fiat Chrysler buy back the vehicle. The other older Jeep models have crash susceptible fuel tanks that are placed behind the rear axle and close to 75 people have been killed in crash related fires. However, FCA reveals that these vehicles are safe as compared to vehicles retailed in the particular period.
As per the agreement, the Ram trucks have to be bought back for the purchase price minus depreciation. According to the company, problems of more than 60 percent of the trucks have been fixed and the company is allowed to resell these trucks after they have been repaired. This fine has beaten the previous record amount of $70 million (Rs. 448.1 crores) that was given to Honda over lapses in recalls for defective airbags that were made by parts supplier Takata.
