Fiat Chrysler Automobiles controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
Fiat Chrysler Automobiles fined and sentenced in union corruption case
Fine or penalty
A U.S. District Court fined Fiat Chrysler Automobiles $30 million, sentenced it to three years' probation and ordered an independent compliance monitor over payments to union leaders in exchange for negotiation concessions. The automaker had pleaded guilty to conspiracy.
Source excerpt
U.S. District Court Judge Paul Borman also sentenced FCA to three years' probation and ordered for an independent compliance monitor.
Fiat Chrysler Automobiles (FCA) was fined $30 million Tuesday for paying off union leaders for negotiation concessions, the Associated Press reported.
2021
Alfa Romeo recalls certain Giulia and Stelvio vehicles over ABS defect
Recall announced
Fiat Chrysler Automobiles decided to conduct a safety recall of certain U.S. Alfa Romeo Giulia and Stelvio vehicles after a supplier reported an issue involving a missing or partially missing weld in the ABS hydraulic control unit. The component may separate during braking and cause loss of ABS functionality. Alfa Romeo said it would replace the affected ABS hydraulic control units; the article reports nine vehicles affected and says no related customer assistance records, warranty claims, field reports, accidents, or injuries were known.
Company response
Remediation — Alfa Romeo
Both customers and authorized U.S. dealers will be informed of the campaign on June 23rd, according to Alfa Romeo, which will replace the ABS HCU with remedy parts assembled outside of the suspect period.
Source excerpt
Both customers and authorized U.S. dealers will be informed of the campaign on June 23rd, according to Alfa Romeo, which will replace the ABS HCU with remedy parts assembled outside of the suspect period.
A week later, Fiat Chrysler Automobiles decided that a safety recall is of utmost necessity because the HCU rotor and shaft may separate when braking, leading to a loss of ABS functionality.
Even though only nine units of the Giulia compact executive sedan and Stelvio are called back, the condition reveals the lax quality control that hampers down the marque’s appeal in North America.
2020
European investigations into emissions software
Authorities from Germany, Italy and Switzerland searched FCA offices in connection with continuing allegations involving diesel-emissions testing software. FCA also faced a proposed United Kingdom class action concerning selected Alfa Romeo, Fiat, Iveco and Jeep vehicles.
2020
Fiat Chrysler Automobiles: Takata Airbag Recall Controversy Note
Recall announced
In January 2020, a new round of Takata airbag recalls was announced covering about 10 million vehicles, including US-market vehicles from BMW, Fiat Chrysler, Honda and Subaru. According to the source, the affected vehicles had previously been recalled and repaired with replacement inflators of the same design and chemistry. The recall therefore concerned vehicles that had already received replacement inflators rather than only vehicles with original equipment. The event is recorded as part of the broader Takata airbag recall controversy involving Fiat Chrysler Automobiles and other automakers.
A new round of recalls was announced for about 10 million vehicles, including US-market vehicles from BMW, Fiat Chrysler, Honda and Subaru. The affected vehicles had previously been recalled and repaired with replacement inflators of the same design and chemistry.
Source excerpt
This new round of recalls, announced Wednesday, affects US-market vehicles from BMW, Fiat Chrysler, Honda and Subaru, among others.
The problem with these already-repaired vehicles is that during the early stages of the recall, Takata replaced dangerous old inflators with new ones of the exact same design and chemistry.
2020
GM appeals order to meet with FCA
Lawsuit filed
General Motors asked the U.S. Court of Appeals for the 6th Circuit to vacate an order requiring its chief executive and FCA's chief executive to meet to seek a resolution to GM's racketeering lawsuit. The request was reported on June 29, 2020. The order at issue would have required the two chief executives to meet in an effort to resolve the racketeering lawsuit filed by GM. GM sought to have the appellate court set aside that requirement.
Stated objective. To vacate the judge's ruling requiring the executives to meet.
Company response
Denial — Fiat Chrysler
We intend to vigorously defend against this meritless lawsuit and pursue all legal remedies in response to it.
Denial — Fiat Chrysler
In a statement, Fiat Chrysler called the lawsuit “meritless” and said it would defend itself vigorously.
Source excerpt
General Motors filed its federal racketeering lawsuit against Fiat Chrysler Automobiles last December, alleging that former chief executive Sergio Marchionne orchestrated a bribery conspiracy to corrupt three rounds of bargaining with the United Auto Workers union in an attempt to try and force a merger with GM, reports.
General Motors has asked the U.S. Court of Appeals for the 6th Circuit to vacate a judge's ruling that it must meet with Fiat Chrysler Automobiles in order to reach a solution for its racketeering lawsuit.
By Brad Anderson June 29, 2020 5:31 pm EST
2020
EU opens antitrust investigation into Fiat Chrysler–PSA merger
Investigation
The European Union opened a four-month antitrust investigation into the pending merger between Fiat Chrysler Automobiles and Groupe PSA, focusing on competition in commercial vans. The automakers said the investigation should not affect their goal of closing the transaction by the end of March 2021.
Source excerpt
A four-month antitrust investigation launched by the executive brand of the European Union on Wednesday into the pending merger between Fiat Chrysler Automobiles NV and French rival Groupe PSA should not affect the companies' goal to close their transaction by the end of March 2021, the automakers said.
欧盟反垄断监管机构周三表示，菲亚特克莱斯勒汽车公司（Fiat Chrysler Automobiles）和标致雪铁龙集团（PSA Group）拟议中的合并，可能会损害14个欧盟国家和英国小型厢式车行业的竞争。他们对该协议展开了为期四个月的调查。
2020
FCA recalls vehicles over airbag-cover hazard
Recall announced
Fiat Chrysler Automobiles recalled almost 1 million vehicles because pieces of the driver's-side airbag cover could detach and injure occupants. The article states that the issue may be related to at least 14 driver injuries. Dealers were to replace the cover free of charge.
Fiat Chrysler Automobiles is recalling almost 1 million vehicles because pieces of the driver's-side airbag cover could detach and injure occupants. The article says the issue may be related to at least 14 driver injuries; dealers will replace the cover free of charge.
Company response
Recall — Fiat Chrysler Automobiles
Fiat Chrysler Automobiles (FCA) is recalling almost 1 million vehicles because pieces of the driver's-side airbag cover could act as dangerous projectiles during a crash.
Source excerpt
The automaker says that parts of the plastic airbag cover can detach and strike occupants if the airbags deploy, and that it is aware of at least 14 injuries to drivers that may be related to this issue.
Fiat Chrysler Automobiles (FCA) is recalling almost 1 million vehicles because pieces of the driver's-side airbag cover could act as dangerous projectiles during a crash.
The fix: Dealers will replace the airbag cover, free of charge.
2019
Diesel-emissions litigation settlement
FCA agreed to pay approximately $800 million to resolve U.S. lawsuits and related claims concerning alleged manipulation of diesel-emissions testing.
2019
SEC fines Fiat Chrysler Automobiles $40 million
Fine or penalty
The U.S. Securities and Exchange Commission fined Fiat Chrysler Automobiles $40 million for fraudulent conduct that included falsely reporting vehicle sales and overstating sales growth. The SEC said the conduct misled investors.
Company response
Remediation — Fiat Chrysler Automobiles
The company has reviewed and refined its policies and procedures and is committed to maintaining strong controls regarding its sales reporting
Source excerpt
The US Securities and Exchange Commission (SEC) slapped automaker Fiat Chrysler Automobiles (FCA) with a US$40 million (RM168 million) fine last week for a number of fraudulent offences, including falsely reporting its new vehicle sales to mislead investors about its monthly sales figures, Reuters reports.
In an official statement, FCA said it had cooperated fully in the process to resolve the matter. “The company has reviewed and refined its policies and procedures and is committed to maintaining strong controls regarding its sales reporting,” it said.
2019
FCA settles SEC case and pays $40 million fine
Fine or penalty
The U.S. Securities and Exchange Commission (SEC) found that Fiat Chrysler Automobiles (FCA) violated anti-fraud and reporting provisions in connection with false vehicle-sales figures. FCA and FCA US settled the matter without admitting or denying guilt and paid a $40 million fine. The settlement concluded the SEC's case concerning the reporting of vehicle sales figures.
The SEC found that FCA violated anti-fraud and reporting provisions in connection with false vehicle-sales figures. FCA and FCA US settled the matter without admitting or denying guilt and paid a $40 million fine.
Company response
Remediation — FCA
The automaker added they have "reviewed and refined its policies and procedures and is committed to maintaining strong controls regarding its sales reporting."
Source excerpt
Following a lengthy investigation, the SEC found the company violated anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, as well as record keeping and reporting provisions of the Exchange Act. FCA and FCA US decided to settle the issue, without admitting or denying guilt, by paying the $40 (£32 / €36) million fine.
2019
Fiat Chrysler agrees to pay $40 million SEC penalty
Fine or penalty
Fiat Chrysler Automobiles NV agreed to pay a $40 million penalty related to sales reports that the SEC said were fraudulent. The SEC said the automaker misled investors about monthly sales gains and inflated results by paying dealers to report fake sales. The event was reported on September 27, 2019.
Company response
Clarification — Fiat Chrysler
“FCA US cooperated fully in the process to resolve this matter,” the automaker said in a statement.
Remediation — Fiat Chrysler
“The company has reviewed and refined its policies and procedures and is committed to maintaining strong controls regarding its sales reporting.”
Source excerpt
New York: Fiat Chrysler Automobiles NV agreed to pay a $40 million penalty related to years of sales reports the US Securities and Exchange Commission said were fraudulent.
The Italian-American automaker issued statements that misled investors by wrongly claiming a years-long streak of monthly gains, the SEC said Friday. Fiat Chrysler inflated results by paying dealers to report fake sales.
2019
Fiat Chrysler recalls diesel Ram pickups over potential engine-fire risk
Recall announced
Fiat Chrysler announced a recall of nearly 160,000 diesel-powered Ram pickups, mainly in the U.S. and Canada, because coolant leaks could lead to overheating and fires. The recall covers Ram 1500 model years 2014 through 2019; the company said it knew of a small number of engine fires and four minor injuries related to the problem.
Stated objective. To fix a problem that could cause some diesel engines to stall.
Company response
Ongoing disclosure — Fiat Chrysler
Fiat Chrysler will notify customers and tell them when to schedule service.
Remediation — Fiat Chrysler
FCA says it’s working to identify the affected vehicles and develop a repair.
Recall — Fiat Chrysler Automobiles
Fiat Chrysler Automobiles is recalling over 425,000 Ram, Jeep vehicles citing faulty windshield wiper arms.
Remediation — Fiat Chrysler Automobiles
The company, in a news release, said it plans to replace the air bag covers on the steering wheels.
Source excerpt
Fiat Chrysler is recalling nearly 160,000 diesel-powered Ram pickups mainly in the U.S. and Canada because they can leak coolant and possibly catch fire.
FCA says it knows of a small number of engine fires and four minor injuries related to the problem.
About 1 million Fiat Chrysler vehicles with four-cylinder engines in the U.S. may spew too much pollution, and the company is working with government officials on a recall.
2017
Diesel-emissions defeat-device allegations
U.S. authorities alleged that software in more than 100,000 FCA diesel vehicles produced between 2014 and 2016 could circumvent emissions controls. The Justice Department filed a civil lawsuit, and investigations also took place in Europe.