NHTSA opened AQ17-004 to determine whether Northwest Chrysler Jeep Dodge of Houston, Texas (Northwest) has complied with the requirements of the National Traffic and Motor Vehicle Safety Act, 49 U.S.C. Chapter 301 (Safety Act) and its implementing regulations. The Safety Act requires, among other things, that a manufacturer notify its dealers of defects related to motor vehicle safety and non-compliances with Federal Motor Vehicle Safety Standards and, in turn, that a dealer not sell a new vehicle subject to a recall unless the recall remedy has been performed (49 U.S.C. 30120(i)). NHTSA issued information request letters (IRs) to Northwest and Fiat Chrysler Automobiles US LLC (FCA) in August 2017, and again in October 2017 and December 2017. NHTSA's investigation indicated that Northwest sold and delivered at least 310 recalled vehicles that did not have the recall remedy completed at the time the vehicles were delivered to the customers. On August 19, 2020, NHTSA entered into a Settlement Agreement with Northwest and its parent company, Ken Garff Automotive LLC, to resolve the Audit Query. In the agreement, Northwest agreed to pay a $100,000 civil penalty and Ken Garff agreed to certain training and auditing requirements. The training relates to company policy, procedures, and compliance to prohibit sales of motor vehicles with open recalls and the integration of FCA's recall notifications into the dealership's inventory system.This Audit Query is closed.
