Fiat Chrysler Faces More Safety Issues
Just two months after being fined a record $105 million, Fiat Chrysler Automobiles NV is under the spotlight again, and it’s for all the wrong reasons.
According to a report from Reuters, federal regulators said that they recently discovered a significant discrepancy in the Fiat Chrysler Early Warning Report data. The data is typically supplied by the company to the National Highway Traffic Safety Administration (NHTSA), as mandated by federal law. Moreover, the said data also serves as a basis for identifying vehicle safety defects, which can then lead to vehicle recalls.
In addition, a subsequent investigation undertaken by the company also revealed that some auto-related death and injury claims also went under-reported. Following this discovery, NHTSA Administrator Mark Rosekind has issued a statement saying, “This represents a significant failure to meet a manufacturer’s safety responsibilities.”
Related: In The Midst Of Massive Recall, Federal Regulators Reportedly Consider Fining Fiat Chrysler $105 Million
In July 2, Fiat Chrysler became the subject of a public hearing when the NHTSA called into question the manner and execution of the company’s 23 vehicle recalls when it comes to safety issues surrounding more than 11 million defective vehicles. In turn, Fiat Chrysler had acknowledged the it violated the Motor Vehicle Safety Act in three aspects. These include the effectiveness and timeliness of recall remedies, notification to owners and dealers as well as notification to NHTSA itself. Following this, Fiat Chrysler was slapped with a fine of $105 million in civil penalty.
As part of this penalty, Fiat Chrysler has been asked to pay $70 million in cash penalty, an amount equal to the civil penalty imposed on Honda last January. In addition, the company has also required to spend at least $20 million on meeting performance requirements as specified in the Consent Order. And finally, another $15 million in penalty can be imposed should independent monitor discover more violations of either the Safety Act or the Consent Order.