Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Fiat Chrysler Boss Says Tougher U.S. Safety Stance Will Raise Costs

May 20, 2015
2 min to read


U.S. vehicle safety regulators' tougher posture toward automakers is a "new phase" in the government's relations with the industry and will likely mean higher costs, Fiat Chrysler Automobiles NV Chief Executive Sergio Marchionne said Tuesday, reports Reuters.


"We're beginning to live through a new phase of regulation in the United States," Marchionne told reporters after the head of the U.S. National Highway Traffic Safety Administration criticized Fiat Chrysler's handling of recalls.

Ad Loading...


NHTSA chief Mark Rosekind on Monday said the agency was reviewing Fiat Chrysler's handling of 20 recalls and criticized the automaker for failing to act aggressively enough to repair 10 million vehicles covered by the actions.


He said the agency could fine Fiat Chrysler up to $700 million and compel it to buy back vehicles. The agency also planned a public hearing in July to examine the company's behavior.


Marchionne said FCA would "work with the agency in a cooperative way ... and meet their requirement".


But he said the regulator's "different attitude" was "bound to increase the costs of execution of the car" because of additional measures automakers would have to take to comply with safety rules.


Marchionne and FCA's U.S. arm, the former Chrysler Group, have tangled with regulators in recent years, notably over the scope of a recall to address concerns that fuel tanks in certain Jeeps posed a risk of rupturing and catching fire in rear-end collisions. Chrysler ultimately agreed to recall nearly 1.6 million Jeeps and install trailer hitches to protect the gas tanks.

Ad Loading...


"I just want clear rules," Marchionne said. "This is the only thing that we, humbly, will request ... We can't change the rules after the event."


Marchionne also said that NHTSA may have unrealistic expectations about how many vehicle owners would bring cars back to dealers to get recall-related repairs.


"The willingness of us to repair 100 percent is on the table. But the likelihood of us getting 75 percent of the cars in that period of time even if we work our buns off is limited," he said.


He was referring to a NHTSA target for automakers to repair 75 percent of the vehicles covered by a recall within 18 months.


FCA has not made a decision on where to build its next-generation Jeep Wrangler, Marchionne said. The model is currently built in Toledo, Ohio.

More Industry

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →