Fiat Chrysler will pay a record $90 million (R1.1bn) for lapses in recalls of its vehicles under a deal reached with US regulators, the company said on Monday.
The carmaker will pay a $70-million fine to the National Highway Traffic Safety Administration (NHTSA). In addition to that, it will spend a further $20 million on “consumer outreach activities and incentives to enhance certain recall completion rates” and will be required to pay an additional $15 million if it fails to comply with the terms of the deal, it said in a statement.
Under the deal, an independent auditor will monitor the company's recall process for three years. If the company fails to comply with the terms imposed, the NHTSA can extend the scrutiny by another year.
In a report on Sunday, the Wall Street Journal quoted sources as saying that under the deal the company will buy back some defective vehicles.
The fine was to punish legal violations in recalls of 11 million vehicles, including older Jeep models with rear fuel tanks linked to numerous fatal fires, the Journal said.