BRASILIA - Brazil Fiat will be fined 1.67 million US dollars($2.33 million)  and ordered to recall its Fiat Stilo models, for failing to fix a wheel problem that led to eight deaths, the Justice Ministry said Tuesday.

The maximum fine that can be levied by the Consumer Defense and Protection Department, is justified "considering the automaker denied the presence of a defect and failed to make the recall, jeopardizing the health and safety of its customers," the ministry said in a statement.

The fine and recall order stems from a report by the National Transport Department confirming that the Fiat Stilo's wheel flaw killed eight people and caused at least 30 traffic accidents from 2007-2009.

The report said that, in extreme cases, the flaw can cause the wheel to come off, as in previous Stilo models made between 2004-2008.

The report said the defects were never fixed so the government is authorized to order the company to recall all Stilo models made since 2004 and replace the alloy wheel rims with forged steel ones.

Brazil Fiat told reporters it "totally disagrees" with the finding. According to industry media, 11,200 Fiat Stilo units were sold in 2009.

-AFP