agent Entrepreneur logo
MenuMENU
SearchSEARCH

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

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 ... Read More »

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 (FCHA.MI) 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

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...