Fiat Chrysler Takes Another Hit for Safety Reporting Failures

 

The National Highway Traffic Safety Administration isn't pulling its punches when it comes to safety reporting failures. Earlier this month, the agency hit Fiat Chrysler with its second multi-million dollar fine. The hope is the fines will make the industry more proactive when it comes to consumer safety.

2015 has not been a good year for auto manufacturer Fiat Chrysler when it comes to complying with safety reporting regulations. For the second time this year, the National Highway Traffic Safety Administration (NHTSA) hit the company with a multi-million dollar fine because the company failed to report crash data.

Ever since the TREAD Act of 2000, auto manufacturers like Fiat Chrysler have been required to report deaths, injuries, warranty claims, consumer complaints, and field reports of safety issues to the NHTSA so the agency can determine whether a recall is necessary. In a recent press release, U.S. Transportation Secretary Anthony Foxx explained:

“Accurate, early-warning reporting is a legal requirement, and it’s also part of a manufacturer’s obligation to protect the safety of the traveling public. . . . We need FCA and other automakers to move toward a stronger, more proactive safety culture, and when they fall short, we will continue to exercise our enforcement authority to set them on the right path.”

For Fiat Chrysler, that path has contained two big speed bumps. In July, the NHTSA imposed a $105 million fine against the company for mishandling 23 recalls affecting 11 million vehicles. The settlement also required the company to hire an independent, third party auditor to review the company's policies and procedures.

The audit didn't go well. Problems with the company's Early Warning Reporting system had led to faulty reporting since 2003. The problem: Chrysler had forgotten to update its program to add new vehicles, including the Fiat brand.

Now Fiat Chrysler and the NHTSA have reached a second settlement. The company must pay a $70 million settlement to federal regulators. In addition, it has 6 months to disclose all the missing crash information. The automaker told the New York Times it was “confident that it identified and addressed all issues that arose during the relevant time period, using alternate data sources.” If it misses the deadline, Fiat Chrysler could face another $35 million in deferred penalties.

The NHTSA has spent 2015 flexing its muscles and calling automakers to task when they fall down on consumer protections. In addition to Fiat Chrysler, the agency has fined Honda and Ferarri for similar failures to report data. With the recent passage of a new transportation bill that ups the cap on fines for reporting failures, 2016 promises to be another good year for consumer protection.

Dani K. Liblang is a consumer protection attorney at The Liblang Law Firm, P.C., in Birmingham, Michigan. She represents consumers who are sold lemon vehicles against dealerships and auto manufacturers. If your car is a lemon, contact The Liblang Law Firm, P.C., today for a free consultation.