The National Highway Traffic Safety Administration (NHTSA) on Friday stated it would fine Italian carmaker Ferrari $3.5 million for failing to report safety issues of its vehicles. The carmaker admitted that it did not comply with the law related to an agreement signed in October 22.
Earlier, Ferrari was exempted from reporting safety issues as it was considered a small player in the automobile market. But the carmaker came under Fiat and Chrysler after their merger in 2011, making the company to comply with the laws where customer complaints and safety issues of vehicles have to be reported. Leading carmakers and their affiliated have agreed to submit quarterly reports to the department of potential safety concerns.
“There is no excuse for failing to follow laws created to keep out drivers safe,” Anthony Foxx, U.S Transportation Security.
Ferrari, an affiliate of Chrysler was fined as it failed to report three accidents and other data of the last three years to NHTSA. A letter was sent to two Congress members in July regarding the Italian carmakers failure to file reports. According to the terms, Ferrari must increase its methods for early process reporting, train personnel based on requirements and submit the reports. The terms are enforceable in a federal court in case of violation.
The carmaker stated that it had already begun implementation of new procedures and passed on te pending reports to NHTSA. The reports did not convince the agency as the carmaker failed to report three fatalities. Sean Kane, president of Safety Research and Strategies stated that the NHTSA was not being aggressive enough.
Recently, Fiat Chrysler hinted on its plans to split Ferrari into an independent company by next year and was part of the company’s plans to raise capital and growth of the companies.
[ Source ]