DETROIT (AP):

Fiat Chrysler could be required to lay out hundreds of millions of US dollars to get potentially defective Ram pickups and older Jeeps off the road under a deal with safety regulators to settle claims that the automaker mishandled nearly two dozen recalls.

The National Highway Traffic Safety Administration (NHTSA) is requiring the company to offer to buy back certain Ram pickup trucks and Dodge and Chrysler SUVs with defective steering parts that can cause drivers to lose control. More than 579,000 vehicles were initially recalled in 2013, but the company would only be required to buy back a third of those because many of the pickups have already been repaired.

The Italian-American automaker must also allow owners of more than a million older Jeeps with vulnerable rear-mounted gas tanks to trade them in at above-market value or give them US$100 as an incentive to get a repair.

Performance requirements

Fiat Chrysler also faces a record civil penalty of up to US$105 million. That beats the old record of US$70 million assessed against Honda Motor Co for lapses in reporting deaths and injuries to safety regulators. FCA's fine includes US$70 million in penalties, at least US$20 million to meet performance requirements and US$15 million if an independent recall monitor finds any further violations.

Fiat Chrysler shares traded in the New York Stock Exchange dropped nearly five per cent to close at U$14.41 on Monday, following the weekend announcement of the deal.

The settlement is the latest sign that auto-safety regulators are taking a more aggressive approach towards companies that fail to disclose defects or don't properly conduct a recall.

Pay a price

"Merely identifying defects is not enough," United States Transportation Secretary Anthony Foxx said on Monday during a conference call with media. "Manufacturers that fail in their duty to fix these defects will pay a price."

Nearly 1.3 million Rams, Chrysler Aspen and Dodge Durango SUVs and Dodge Dakota pickups from as far back as the 2003 model year were recalled for the steering problem in 2013. The government excluded around 700,000 of the oldest models from the buy-back programme because most have already been repaired or are no longer on the road.

But it ordered the buy-back for up to 579,000 vehicles from the 2008 through 2012 model years. Of those, around 193,000 have not got the recall repairs and are eligible for either a repair or a buy-back, according to recall reports submitted to the government by Fiat Chrysler.

In each case, Fiat Chrysler would be required to pay the original purchase price plus 10 per cent, minus a certain amount for depreciation.

The ultimate cost of the settlement depends on how many pickup and SUV owners join in.