U.S. fines Fiat Chrysler $70 million over safety reporting lapses

Thu Dec 10, 2015 11:51am EST
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By David Shepardson

WASHINGTON (Reuters) - The U.S. Department of Transportation said on Thursday it fined Fiat Chrysler Automobiles NV $70 million for failing to report vehicle crash deaths and injuries since 2003.

The Italian-American company is the latest automaker to be fined for failing to comply with a 2000 federal law that requires disclosure of death and injury reports to help safety officials detect defect trends early.

Fiat Chrysler said it would pay the fine and pledged to change procedures to ensure proper reporting. It is also commissioning a third-party audit to ensure compliance with the law and to determine the full extent of the reporting failures. The audit findings will be made public.

Fiat Chrysler must turn over all crash reports it failed to disclose within six months.

The automaker admitted in September it had failed to provide data, including reports of deaths and injuries, warranty claims, consumer complaints and field reports of safety issues.

"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," U.S. Transportation Secretary Anthony Foxx said.

The National Highway Traffic Safety Administration said the failures stem from problems in FCA’s electronic system for monitoring and reporting safety data, "including improper coding and failure to account for changes in brand names" - rather than intentionally withholding information.

In July, Fiat Chrysler agreed to a $105 million settlement for mishandling nearly two dozen recall campaigns covering 11 million vehicles. It agreed to a three-year consent agreement and monitoring by former Transportation Secretary Rodney Slater. Slater will also monitor Fiat Chrysler's compliance with the early warning reporting requirements.   Continued...

The Fiat logo is pictured at a car dealership at Motor Village in Los Angeles, California October 13, 2014.  REUTERS/Mario Anzuoni