11.03.2010 FIAT TO RECALL BRAZILIAN BUILT STILO AFTER GOVERNMENT MINISTRY RULING

FIAT STILO BLACKMOTION
FIAT STILO BLACKMOTION
FIAT STILO BLACKMOTION

Thirty accidents involving the detachment of wheels from the Fiat Stilo in the period of 2007-2008 were investigated and eight accidents showed signs of defect. No cars fitted with ABS were involved.

While the recalls embroiling Toyota have hit the headlines worldwide, Fiat Automóveis is being forced to recall the Fiat Stilo built in Brazil after the Ministério da Justiça (Justice Ministry) ruled that faulty rear hubs caused the detachment of the road wheel and could have caused a number of deaths. Fiat, while agreeing to recall the Stilos built in Brazil since 2004, denies the accidents were the result of faulty components and is preparing to appeal the decision.

The news was posted on the Ministério da Justiça's website and followed an investigation by the Departamento Nacional de Trânsito (Denatran) which was forwarded to the Grupo de Estudos Permanentes de Acidentes de Consumo (GEPAC). As a result the Departamento de Proteção e Defesa do Consumidor (DPDC) of the Ministério da Justiça has fined Fiat 3 million reals (US$1.7 million), the maximum permissible in the Código de Defesa do Consumidor (Consumer Protection Code).

In a hard hitting statement, the Ministério da Justiça said that Fiat had been closely involved in the investigation: "The automaker has manifested itself in the process 13 times, supplied technical reports and hundreds of pages of documents, which stated categorically and repeatedly that there was no defect and, therefore, no need to hold a recall. The automaker also claimed that the detachment of the wheels was a result of accidents and not its cause." The statement added that the maximum penalty was issued: "considering that the automaker denied the existence of a defect and had no recall, putting at risk the health and safety of consumers." Thirty accidents involving the detachment of wheels from the Fiat Stilo in the period of 2007-2008 were investigated and eight accidents showed signs of defect. No cars fitted with ABS were involved.

Fiat Automóveis was swift to respond and issued a statement questioning the "unprecedented decision" of the DPDC which it said was "surprised" by. It will however carry out a recall to replace the rear hub. In its statement Fiat Automóveis said: "The company insists, however, that the Fiat Stilo will not have any inconvenience or risk to the consumer, as maintained in a technical report commissioned. Based on this conviction, Fiat Automóveis reports that it will immediately seek providence to appeal in search of full clarification of the facts. The DPDC's decision was based on a report [by] the company CESVI, contracted by Denatran – Departamento Nacional de Trânsito, which Fiat has not had prior knowledge [of] or opportunity to [challenge]. Fiat disagrees with the report and the decision of DPDC. Fiat has reassured its customers regarding the security of the Stilo, recalling that it was the first automaker in Brazil to convene a spontaneously recall, a clear demonstration of transparency and respect for consumers. They are principles that have always guided the conduct of the company."
 

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