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Sunday 28 May 2017
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FCA Admits It Under-Reported Accident Injury, Death Claims

FCA Admits It Under-Reported Accident Injury, Death Claims

Fiat Chrysler admits it didn’t tell the whole truth when it comes to its TREAD reporting to the NHTSA. The Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act requires all automakers and their suppliers to notify NHTSA of all accidents involving possible defects in their vehicles along with all warranty and property damage claims received from customers.

“Preliminary information suggests that this under-reporting is the result of a number of problems with FCA’s systems for gathering and reporting EWR data,” NHTSA said.

In a statement released Tuesday, FCA said:

As a result of FCA US LLC’s heightened scrutiny of its regulatory reporting obligations growing out of its recent Consent Order with NHTSA, FCA US identified deficiencies in its TREAD reporting. FCA US promptly notified NHTSA of these issues, and committed to a thorough investigation, to be followed by complete remediation. FCA US is in regular communication with NHTSA about its progress in the investigation. FCA US takes this issue extremely seriously, and will continue to cooperate with NHTSA to resolve this matter and ensure these issues do not re-occur.

FCA has already been forced to pay a $105-million fine over mishandled recalls, while the brand also initiated a buyback program for thousands of Ram pickup trucks.

Early in 2015, the NHTSA fined Honda $70-million fine for failing to report deaths, injuries, and certain warranty claims to the federal government in violation of the TREAD Act. Federal law requires manufacturers to submit comprehensive EWR reports of potential safety concerns to the Department. These quarterly reports include production information; incidents involving a death or injury; aggregate data on property damage claims, consumer complaints, warranty claims, and field reports; and, copies of field reports involving specified vehicle components, a fire, or a rollover. The data are then used to investigate whether safety defects or defect trends exist and warrant further action, including possible recalls.

Photo Credit: FCA