Fiat-Chrysler boss Sergio Marchionne has warned that a tougher stance towards the auto industry from US regulators will mean higher costs for automakers.

Reuters reported remarks made by Marchionne after the NHTSA said it could fine FCA or compel it to buy back vehicles if it failed to repair vehicles quickly enough.

“We’re beginning to live through a new phase of regulation in the United States,” Marchionne told reporters, according to Reuters.

NHTSA chief Mark Rosekind said earlier this week that it was reviewing Fiat Chrysler’s handling of twenty recalls and said it could fine FCA up to US$700m.

Marchionne reportedly said that the regulator’s new attitude would increase the costs of the “execution of the car” because of additional measures taken.

The NHTSA has set a target for automakers to repair 75% of the vehicles covered by a recall within 18 months.

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