[JURIST] The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) [official website] on Thursday determined [press release] that Fiat Chrysler [official website] failed to provide a remedy and notices for 23 recalls related to malfunctions of their automobiles. It is reported [AP report] that the Chief of the NHTSA will punish Fiat Chrysler for the failed recalls involving approximately 11 million vehicles. According to the transcript [text,PDF] of Thursday’s hearing, the 23 recalls involved “fuel systems that can catch fire in rear crashes, defective ignition switches that can disable a vehicle’s airbags and defective air bags that can unexpectedly go off.” Fiat Chrysler has 10 days to submit a written response to the allegations brought forth and may face harsh fines and penalties.

In 2014, the US Department of Justice (DOJ) [official website] announced [JURIST report] a $1.2 billion settlement agreement with Toyota for misleading customers and US regulators. In November 2012 Toyota settled [JURIST report] a class action lawsuit for $35.5 million brought by its shareholders failing to disclose vehicle quality issues. In 2010, Toyota agreed [JURIST report] to pay $32.4 million in fines following investigations by the National Highway Traffic Safety Administration. JURIST Guest Columnist Bruce Aronson in 2011 argued [JURIST op-ed] that the recent corporate scandals in Japan, including the Toyota recalls, highlight the need for reform of that country’s corporate governance structure.