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Fines and Penalties Suffered By Automakers

Lately, numerous automakers have been under pressure and fined with huge amounts of money for not reporting defects or mishandling recalls. Check the fines and penalties suffered by automakers recently and do not forget to obtain auto insurance quotes online if you have a car produced by the following car makers:

  • VW-logoVolkswagen. For Volkswagen, the cost of its cheating on emissions tests in the U.S. is likely to run into the tens of billions of dollars and prematurely end its long-sought status as the world’s biggest carmaker. As well as fines from governments, Volkswagen faces the massive expense of recalling up to 11 million cars globally. Already the company has set aside 6.5 billion euros ($7.3 billion) to cover the fines and recalls — but it’s a fair bet that’s only the start. Some experts estimate the bill could ultimately be five times as large. Marc-Rene Tonn, an analyst at Warburg Research, says they could ultimately exceed 35 billion euros ($39 billion). The scandal has caused Volkswagen’s shares to drop by about 40 percent, lopping off about 30 billion euros ($33 billion) from the company’s market value.
  • Fiat Chrysler Automobiles NV. National Highway Traffic Safety Administration (NHTA) reported that Fiat Chrysler Automobiles NV has significantly under-reported the numbers of death and injury claims, which happened due to possible defects in its cars in its Early Warning Report data. During the in-house investigation, the federal regulator found that large number of auto-related death claims have been concealed by the automaker. The automaker can be fined with more than $100 million if it is found guilty.
  • General Motors Company agreed to pay $900 million to the Justice Department in order to settle criminal prosecution against the company for concealing defects in its ignition switches. This defect has caused around 100 deaths and several injuries.
  • Honda Motor Co Ltd (ADR) suffered $70 million in fines for not revealing deaths, injuries and other related information in its Early Warning report to the regulators.

 

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