Fiat Chrysler faces record $105 million fine over recall lapses

July 26, 2015, 12:38 PM UTC

U.S. authorities are close to imposing a record $105 million fine on Fiat Chrysler Automobiles for recall lapses covering millions of vehicles, the Wall Street Journal reported on Saturday citing people familiar with the matter.

A settlement could be unveiled as early as Monday and Fiat Chrysler will have an opportunity to recoup some of the penalties if it meets certain conditions, the newspaper said.

In some cases, the automaker will agree to repurchase recalled vehicles.

Fiat Chrysler declined to comment.

As part of the settlement, the National Highway Traffic Safety Administration (NHTSA) is also expected to assign the Italian-U.S. company an independent monitor to audit its recall processes for an extended period.

In early July, the head of the NHTSA said it would move quickly to take action in response to Fiat Chrysler’s handling of recalls involving up to 11 million vehicles.

Among them are nearly 1.6 million Jeep vehicles recalled in 2013 because of fuel tanks that could rupture and cause a fire.

The automaker risked more than $700 million in fines.

On Friday, Fiat Chrysler announced it would recall 1.4 million vehicles in the United States to install software to prevent hackers from gaining remote control of the engine, steering and other systems.

Those vehicles are not included in the settlement.

(Reporting by Valentina Za; editing by Jason Neely)