NHTSA Comes Down Hard On Auto Industry; Fiat Chrysler Gets Slammed

The National Highway Traffic Safety Administration has been under the microscope recently after several high profile automakers were found to be operating dangerously and putting the public at risk. The organization claims that carmakers are often deceptive in order to avoid hefty fines, but the NHTSA appears to be taking a hardline against unsafe procedures moving forward in order to prevent any further safety issues.

Fiat Chrysler To Pay Record Amount

In addition to the fine, Fiat Chrysler is required to buy back qualifying vehicles, something that analysts estimate could cost the company around $3 billion. However, Fiat Chrysler execs say the damage won't be quite so expensive, since the cars can be resold once they've been adequately repaired.

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Strict Rules Ahead

Though Fiat Chrysler is the first carmaker to suffer the NHTSA's wrath, many believe that the future for automakers is likely to be stringent. After both General Motors Company GM and Toyota Motor Corp (ADR) TM were accused of misleading regulators to hide mechanical issues with their cars, the NHTSA is cracking down on unsafe operations.

U.S. regulators are likely to be much more aggressive in the coming years to ensure that any safety issues are fully disclosed and dealt with accordingly, something that could cause a financial headache for car manufacturers.