DETROIT: Fiat Chrysler Automobiles could pay billions of dollars to buy back defective trucks as part of a settlement with US safety regulators, but has the option to recover costs by reselling vehicles once they are repaired.
The auto safety watchdog on Sunday slapped the Italian-American automaker with a $105 million fine - the largest ever levied by US regulators against a carmaker - over lapses in safety recalls involving millions of vehicles.
FCA said on Monday that about 193,000 Ram trucks previously recalled for suspension and steering problems had not been repaired and were therefore eligible for the buyback deal negotiated with the National Highway Traffic Safety Administration.
That could put FCA on the hook for nearly $3 billion, if the average buyback price is $15,000 per vehicle. But the net cost could be much lower.
A company representative noted on Monday that the NHTSA agreement gives FCA the option of repairing and reselling any vehicles it repurchases from owners.
The automaker said in a statement on Monday that the net cost of the buyback program would not be "material to its financial position, liquidity or results of operations."
FCA shares were down 4.8 percent at $14.43 on Monday afternoon in New York trading.
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