FCA Dealers Can’t Sell Used Cars Without Recall Repairs

Fiat Chrysler Automobile dealers won’t be able to sell cars without recall repair work or they risk losing their incentive money under a new agreement with the federal government, Automotive News is reporting.
The agreement was part of the sweeping package penalties imposed by the National Highway Traffic Safety Administration, including up to $105 million in fines. According to the consent agreement by the federal bureau and FCA, the company already asks dealers to complete recall work, but the new mandate would reinforce that existing policy.
In the United States, it’s illegal for a dealer to sell a new car without recall repair work, but no such law exists for used cars. A recent proposal in Congress to force used car dealers to complete open recall repair work was met with opposition.

Congress may approve a measure requiring car rental companies to comply with open recalls before it sends its cars out on to the roads.
According to a used car industry spokesman, the difficulty in getting all used car dealers to comply with recall repair work is resources and the dealers’ abilities to close the work orders with NHTSA. Only dealerships affiliated with manufacturers can perform open recall work and close those cars out with the federal safety bureau.
Carmax, for instance, provides a detailed report of recalls for its cars and encourages new buyers to register with the manufacturer to be notified of recalls. A recent report suggested that there may be up to 36 million cars on U.S. roads that haven’t complied with recalls.
It’s unclear from the consent order if the recall repair work applies only to FCA used cars sold on FCA lots, or if it would require all cars sold at FCA dealers to comply with manufacturer recalls.
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