Brazil’s Justice Ministry has fined Fiat $1.5 million

Brazil’s Justice Ministry has fined Fiat $1.5 million

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In Brazil, a 3 million reais ($1.5 million) fine has been imposed on Fiat S.p.A. by the country's Justice Ministry for its failure to recall thousands of Stilo cars built after 2004. There have been complaints about an alleged rear-wheel hub problem. Fiat posted a statement on its website last Tuesday, saying that the Justice Ministry has ruled for the company to pay the highest fine possible under the local consumer law. The Justice Ministry had cited that the producer didn´t acknowledge that there was such a problem and as a result, it placed the consumers' health and safety at risk. Fiat said that it would proceed with the recall in order to put to rest any concerns that customers may have. However, Fiat insists that there is no evidence of such a problem in its Stilo vehicles and that is why it would appeal the ministry's decision. About 60,000 Stilo cars were made in Brazil between 2004 and 2008. The Justice Ministry said that the defect doesn´t concern Stilo cars with an anti-lock braking system. Fiat rolls out about 700,000 cars a year in Brazil.


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