A suburban Phoenix Chevrolet dealership was fined $40,000 because federal regulators found out that it was selling recalled new vehicles without the proper repairs. After a two-year investigation, Sands Chevrolet of Surprise, Ariz., agreed to pay the civil penalty as part of a settlement with the National Highway Traffic Safety Administration.
According to federal law it is forbidden to dealers to sell new vehicles subject to open recalls without fixing them first. The concerned dealership has changed its procedures to ensure that all vehicles are checked for open recalls before they are delivered to customers. After NHTSA made its investigation public in May 2014, the dealership had sold two recalled Malibu Eco sedans without doing repair work mandated by General Motors.
It was said in 2014 that the sales were a mistake, which happened because the cars were being stored off-site during an $8 million construction project. Both of the cars were repaired after the customers took delivery. NHTSA opened its investigation after it “received information that alleged Sands Chevrolet sold and delivered” recalled cars that hadn’t been repaired.
