Fiat-Chrysler hires outside firm to review recalls

Sat, 24 May 2014

Want proof that the General Motors' recalls will eventually have a positive impact on the auto industry? Here it is. Thanks to the Detroit-based manufacturer's mishandling of the ignition switch recall, other manufacturers are taking a second look at their recall procedures, just to make sure they don't fall victim to the same mistakes.

One such manufacturer is Fiat Chrysler, which has hired a pair of outside experts to review its recall procedures. FCA CEO Sergio Marchionne discussed the outside input as part of a talk held at the Brookings Institute earlier this week. The move is perhaps an early indication of how much more seriously manufacturers will begin taking recalls, following the GM fiasco.

"It can't be that all of a sudden we woke up and we realized we had these issues, so there must be a change in attitude," Marchionne said at Brookings. "We're beginning to see people getting truly, truly cautious."

According to Marchionne, the consultants are "to look at the Chrysler process itself to find out whether we can improve it - we're going to benchmark it against other [automakers]." "We're going to try and take a look to see whether we're doing all the right things," Marchionne said.

The affable 61-year-old exec, though, stressed that he won't be involved in any recall processes, and for a very good reason.

"The chances of my involvement are zero to none," Marchionne said, according to TheDetroitBureau.com. "There is no way an executive with P-and-L (profit-and-loss) responsibility should be involved. That assessment needs to be made by technical people."

By Brandon Turkus