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Rodney Slater Tapped to Audit Fiat Chrysler's Safety Practices, Part of Settlement with Federal Regulators

Oct 24, 2015 03:49 AM EDT | By Jean-Claude Arnobit

Rodney Slater, a former U.S. Transportation Secretary, has been tapped to audit Fiat Chrysler Automobile NV's (FCA) safety practices, according to a report from The Wall Street Journal.

The move is part of the FCA's settlement with federal regulators.

The Wall Street Journal adds that Slater would serve as an independent monitor on the FCA and keep watch on the automaker's obligations.

These obligations are under a consent order the FCA signed with regulators from the National Highway Traffic Safety Administration (NHTSA) in July.

The regulators have selected Slater as the independent monitor among the three candidates that FCA presented, according to The Wall Street Journal.

Slater will audit FCA's safety practices for up to four years under the settlement terms.

The Wall Street Journal adds that NHSTA hit the FCA with a record $105 million in financial penalty last July over recall lapses covering millions of vehicles.

The settlement deferred $15 million of the penalty that could be payable if FCA violates the deal's terms of federal law.

The Wall Street Journal adds that regulators have targeted the FCA for legal violations in misleading and obstructing regulators, and inadequate and lagging repairs.

The automaker also failed to alert car owners to recalls in a timely manner.

The Detroit News adds that Mark Rosekind, an administrator at the NHTSA said on Friday that Slater's role is important in helping the NHSTA oversee FCA's compliance.

Slater, who will work with a team of attorneys, will also help the company address the issue that led to the NHSTA's action.

Scott Kunselman, the senior vice president for vehicle safety and regulatory compliance at the FCA, told The Detroit News that they welcome Slater and expect to productively work with him.

"We are eager to further improve customer safety and recall execution," he said.

The Detroit News adds that the FCA will need to conduct regular meetings to discuss safety issues with Slater and the NHSTA before they reach the recall stage.

The automaker is also asked to lead the industrywide efforts to boost safety.

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