According to the National Highway Traffic Safety Administration (NHTSA), Fiat Chrysler under-reported the number of deaths, injuries and legal claims it is required to report to regulators. NHTSA says the number of under-reported incidents is “significant”. Under the Tread Act, carmakers are obliged to report certain information to regulators. Financial Times reports that Fiat Chrysler found “deficiencies” in its system while looking into discrepancies.
NHTSA’s administration Mark Rosekind said “FCA [Fiat Chrysler] has informed NHTSA that in investigating that discrepancy, it has found significant under-reported notices and claims of deaths, injuries and other information required as part of the early warning reporting system,” according to Financial Times. The under-reporting stemmed from “a number of problems” said Mr. Rosekind. “This represents a significant failure to meet a manufacturer’s safety responsibilities.”
Fiat Chrysler Automobiles will pay a record $105 million and buy back defective vehicles to settle allegations that the company violated the Motor Vehicle Safety Act’s (Safety Act) requirements to repair vehicles with safety defects. The agreement came after a hearing earlier this month outlined problems with the automaker’s execution of 23 recalls affecting more than 11 million defective vehicles.
Under the agreement, Chrysler could end up buying back more than half a million vehicles with defective suspension parts if owners opt to sell their vehicles back to the company. The automaker also acknowledged it violated the Safety Act in three areas: effective and timely recall remedies, notifications to vehicle owners and dealers, and notification to the National Highway Traffic Safety Administration (NHTSA), Fortune reports. Continue reading Fiat Chrysler Slammed with $105 Million in Fines for Violating Motor Vehicle Safety Act