Fiat Chrysler recalls will cost the company $90 million

Automaker Fiat Chrysler will pay a record million for lapses in recalls of its vehicles under a deal reached with US regulators, the company says© AFP/File Giuseppe CacaceAutomaker Fiat Chrysler will pay a record $US90 million for lapses in recalls of its vehicles under a deal reached with US regulators, the company says

Automaker Fiat Chrysler will pay a record $US90 million for lapses in recalls of its vehicles under a deal reached with US regulators, the company said on Monday.

The Italian-American automaker will pay a $US70-million fine to the National Highway Traffic Safety Administration and spend a further $US20 million on consumer outreach activities, it said in a statement.

It will be required to pay an additional $US15 million if it fails to comply with certain terms of the deal.

FCA has recently been exposed to a significant amount of scrutiny after several hackers, working with the company, revealed that they could remotely take control of certain critical vehicle systems in FCA automobiles.

FCA is in a weaker financial position than Detroit rivals General Motors and Ford. CEO Sergio Marchionne had been agitating earlier this year for a merger between FCA and another car maker. He was reportedly rebuffed by the candidates he reached out to.

In October, FCA will spin off Ferrari in an IPO, valuing the Italian sport car manufacturer at $US10-11 billion.

FCA shares listed last year on the New York Stock Exchange. Prior to last week’s hacking news, the stock had risen about 30% since the offering.

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