The National Highway Traffic Safety Administration on Friday said that the Ferrari sports-car subsidiary of the Fiat Chrysler Automobiles NV has been slapped with a civil fine of USD 3.5 million for not reporting three fatalities and also make other required safety-related defect reports to the US regulators.
The NHTSA, however, said that Ferrari has agreed to pay the fine, admitting that it didn’t file early warning reports for three years that were mandatorily required under the federal law.
Acknowledging the goof in a statement, Ferrari said, “We have inadvertently failed to comply with the reporting regulations of the NTHSA. We agree to pay a civil penalty of USD 3.5 million for the noncompliance.”
Before Ferrari was consolidated with parent Fiat in the year 2011, the former had been exempted from the reporting requirement as a low-volume car maker, NHTSA said while adding, it was highly required by the company to report fatal accidents involving its vehicles.
Ferrari also said that it has commenced the implementation of new rules and procedures for ensuring full compliance in the future.
As part of the settlement, the company has given its nod to train employees about the procedures for fulfilling the reporting requirements. Also, how to file the missing early warning reports will also be taught in the study.
David Friedman, NHTSA’s acting administrator, said, “Early warning reports are like NHTSA’s radar, helping us to find unsafe vehicles and make sure they are fixed.”
The development comes at a time when the regulatory body is facing severe criticism from the lawmakers for its slow pace of investigations and poor response to evidence of safety problems.