Deals
Fiat Chrysler’s Recall Penalty Makes Merger Search Tougher
Fiat to Pay Record $105 Million Fine for Recalls
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Fiat Chrysler Automobiles NV’s search for a merger partner suffered a setback after the Italian-American automaker was reprimanded with a record $105 million penalty for its delayed handling of safety defects in the U.S.
On top of tarnishing the image of Fiat Chrysler cars and trucks, the conditions of the punishment, including an estimated $7.5 billion to buy back defective vehicles, make it even less likely that another automaker will take up Chief Executive Officer Sergio Marchionne’s call to link up. The company said the settlement probably won’t have a material impact on its financial results.