Page 56 - KPA 27 JULY 2015
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Tour de France:                                                   Fiat Chrysler Faces Record $105
                                                                      Million Fine for Recall Lapses
Police fire at
 car in Paris                                                        NHTSA action covers nearly two dozen recalls
square ahead                                                             affecting more than 11 million vehicles

     of race

POLICE in France are searching for the driver of a vehicle that       A burnt-out Jeep Grand Cherokee in 2012, where a 4-year-old boy
                                                                    was killed when the car exploded into flames after being rear-ended.
tried to crash through a security barrier for the Tour de France,
which ends in Paris later.                                          FEDERAL regulators are close to hitting Fiat Chrysler Automobiles NV with a record
The incident took place on the Champs-Elysees at about 08:00
local time, as the barriers were being put out.                     $105 million fine for recall lapses covering millions of vehicles, adding to mounting scru-
Officers opened fire on the car but the suspect drove away. The     tiny of the auto maker’s safety practices.
car was later found abandoned nearby. There is no suggestion of     The National Highway Traffic Safety Administration is expected slap the Italian-U.S. com-
terrorism as a motive, according to a source. It was reported that  pany with the financial penalty and assign an independent monitor to audit the company’s
the car first hit a parked vehicle in the Place de la Concorde.     recall processes for an extended period as part of a sweeping settlement. In some cases,
The driver then tried to pass through a police cordon that was      the auto maker will agree to repurchase recalled vehicles.
being put in place ahead of the final stage of the tour.            Fiat Chrysler is expected to sign a consent order agreeing to the penalties, which could
There was no exchange of fire and our correspondent suggests        be unveiled as soon as Monday. Fiat Chrysler will have an opportunity to recoup some of
the driver could have been a reveller returning from a night out.   the financial penalty if it meets certain conditions.
Two men and two women were reported to have been seen leav-         The government penalties target lapses spanning nearly two dozen recalls affecting more
ing the bullet-riddled car. Tour de France race director Thierry    than 11 million Fiat Chrysler vehicles, including older Jeeps with rear gasoline tanks linked
Gouvenou said he did not foresee any impact on the race, which      to numerous fatal fires.
British cyclist Chris Froome is set to win.                         The fines are tied to legal violations in an array of areas, including misleading and ob-
Security in the French capital was heightened in the wake of the    structing regulators; inadequate and lagging repairs; and failing to alert car owners to
jihadist attacks on Charlie Hebdo magazine and elsewhere which      recalls in a timely manner. The financial penalties aren’t tied to specific recalls, they said.
killed 17 people.                                                   With 1.56 million recalled Jeeps linked to deadly fires, the agency has accused Fiat Chrys-
                                                                    ler of lagging in installing trailer hitches on the backs of vehicles for added protection in
16 INTERNATIONAL                                                    lower-speed collisions. Fiat Chrysler has said vehicle owners are often unwilling to get
                                                                    repairs despite many outreaches from the company.
                                                                    Under terms of the settlement with regulators, Fiat Chrysler is expected to start offering
                                                                    cash to Jeep owners to encourage them to go to dealerships for repairs or additional money
                                                                    on top of the value of their vehicle if they decide to trade it in.
                                                                    The Jeep Grand Cherokee and Liberty sport-utility vehicles covered under the recall have
                                                                    model years ranging from 1993 to 2007.
                                                                    Fiat Chrysler’s executive in charge of vehicle safety and regulatory compliance earlier this
                                                                    month outlined measures the company has taken to improve its handling of safety prob-
                                                                    lems and said the auto maker could have handled recalls better and that NHTSA officials
                                                                    raised legitimate concerns.
                                                                    The government penalties come days after regulators separately started probing Fiat
                                                                    Chrysler’s handling of recalled vehicles with possible cyber security flaws, after hackers
                                                                    commandeered controls of a moving Jeep.
                                                                    Those vehicles aren’t included in the settlement expected to be disclosed in the coming
                                                                    week.

                                                                                                                                                           Monday, July 27 2015 - ARUBA TRAVELLER
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