Sergio Marchionne, the CEO of Fiat Chrysler Automobiles, has admitted concern that the American auto industry will overreact to the probe faced by General Motors over its mishandling of a 2.6 million-car recall.
“On recall issues, you’re going to see a heightened level of sensitivity. You may see excessive corrective actions,” Marchionne said at Chrysler headquarters in Auburn Hills.
The Detroit News reports that Marchionne feels that costs could rise for the industry, although it is “too early” to say if Chrysler will need to increase its reserves to account for the cost of recalls. “Today there is a feeling of angst and a feeling of concern inside the house about what’s going on. I understand it. We just have to manage our way through.”
Marchionne also articulated that engineers are worried as well, as members of Congress have called a gone through five years’ worth of emails in their investigation and even called a General Motors engineer a liar. “There’s an incredible level of concern … especially with engineers who are involved with this process because the downside risk in not promptly” responding to an issue “is relatively large.”
“I think what we’re going to see is that a lot of issues will be taken up to these vehicles recall committees — some of which have nothing to do with safety — but they’ll do it just to make sure they aren’t the ones that are held responsible for making that call. I can’t intervene. I’ve got to allow the machine to adjust itself. It’s going to take some time until this balance is found,” Marchionne said.