Chapman Chevrolet / Cruze Engine Recall

NHTSA opened AQ12-002 to determine whether Chapman Chevrolet of Philadelphia, Pennsylvania 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 an information request (IR) letter to Chapman Chevrolet on October 16, 2012. Chapman Chevrolet responded to this request on November 8, 2012. To gather additional information, NHTSA mailed an IR letter to General Motors LLC (GM) on February 25, 2013. GM responded to this request on April 1, 2013. NHTSA then issued a second IR letter to Chapman Chevrolet on July 2, 2013. Chapman Chevrolet supplied their response on July 30, 2013. NHTSA’s investigation indicated that Chapman Chevrolet sold and delivered 23 recalled vehicles that did not have the recall remedy completed at the time the vehicles were delivered to the customers. NHTSA therefore concluded that Chapman Chevrolet was liable for civil penalties for violations of the Safety Act, pursuant to 49 U.S.C. § 30165. Under a Settlement Agreement dated October 1, 2014, Chapman Chevrolet paid compromised civil penalties in the amount of $50,000. This Audit Query is closed.